Helen Yaffe – Ernesto ‘Che’ Guevara: A Rebel against Soviet Political Economy

Che_SClara

Helen Yaffe is author of Che Guevara: The Economics of Revolution 

In January 1962 Guevara told colleagues in Cuba’s Ministry of Industries (MININD): ‘In no way am I saying that financial autonomy of the enterprise with moral incentives, as it is established in the socialist countries, is a formula which will impede progress to socialism’.[1] He was referring to the economic management system applied in the Soviet bloc, known in Cuba as the Auto-Financing System (AFS). By 1966, in his critique of the Soviet Manual of Political Economy, he concluded that the USSR: ‘is returning to capitalism.'[2] This paper will demonstrate that Guevara’s analysis developed in the period between these two statements as a result of three lines of enquiry: the study of Marx’s analysis of the capitalist system, engagement in socialist political economy debates and recourse to the technological advances of capitalist corporations.[3] At the same time Guevara was engaged in the practical experience of developing the Budgetary Finance System (BFS); an alternative apparatus for economic management in MININD.

Guevara was head of the Department of Industrialisation and President of the National Bank in 1960 when all financial institutions and 84% of industry in Cuba were nationalised. His BFS emerged as a practical solution to problems thrown up by the transition from private to state ownership of industrial production. Cuba had an unbalanced, trade dependent economy dominated by foreign interests, principally from the United States. The production units which passed under the Department’s jurisdiction ranged from artisan workshops to sophisticated energy plants. Many faced bankruptcy while others were highly profitable. Guevara’s solution was twofold: first, to group entities of similar lines of production into centralised administrative bodies called Consolidated Enterprises. This allowed the Department to control the allocation of scarce administrative and technical personnel following the exodus of 65-75% of managers, technicians and engineers after 1959; and second, to centralise the finances of all production units into one bank account for the payment of salaries, to control investment and sustain production in essential industries which lacked financial resources. With the establishment of MININD in February 1961, the BFS evolved into a comprehensive apparatus which embedded these organisational structures in a Marxist theoretical framework, to foster Cuba’s industrialisation, increase productivity and institutionalise collective management.

Advanced technology

Guevara set up the BFS with compañeros who understood the internal accounting practices, administrative centralisation and productive concentration of US corporations and their subsidiaries in Cuba. Guevara examined the documentation from these companies as they fell into state hands. He was impressed with their management structures, the use of centralised bank accounts and budgets, determinate levels of responsibility and decision-making, and departments for organisation and inspection.[4] He told colleagues that the BFS had an accounting system similar to the pre-1959 monopolies operating in Cuba, with their efficient control systems: ‘it’s not important who invented the system. The accounting system that they apply in the Soviet Union was also invented under capitalism.'[5]  

Guevara first travelled to the USSR in 1960. His deputy Orlando Borrego recalled that they visited an electronics factory which did accounts by abacus. Having studied the US-owned Cuban Electricity Company, Shell, Texaco and other corporations which used the latest IBM accounting machines, Guevara was struck by the backwardness of Soviet techniques. He believed that advances achieved by humanity should be adopted without fear of ideological contamination.

With the imposition of the US blockade, Cuba was forced to buy factories from the socialist countries, especially the USSR. This assistance was essential, but the relative backwardness of the equipment clashed with Guevara’s desire for advanced technology transfers. He did not criticise the Soviets for this backwardness per se. Rather, he complained about the contradiction between the high level of research and development in military technology and low investment applied to civilian production. He objected to their ideological resistance to appropriating advances made in the capitalist world. This was a costly mistake in terms of development and international competitiveness.[6] For example: ‘For a long time cybernetics was considered a reactionary science or pseudo-science… [but] it is a branch of science that exists and should be used’.[7] He added that in the US the application of cybernetics in industry had resulted in automation – an important productive development.

Basing a management system for socialist transition on capitalist technology was consistent with Marx’s stages theory of history, which predicted that communism would emerge from the fully developed capitalist mode of production. Marx showed how the tendency to concentration of capital, that is, to monopoly, was inherent in the system. Therefore, the monopoly form of capitalism was more advanced than ‘perfect competition’. The Soviet system originated from predominantly underdeveloped, pre-monopoly capitalism. A socialist economic management system emerging from monopoly capitalism could be more advanced, efficient and productive. The origin of the BFS was the multinational corporations of pre-1959 Cuba and it was therefore more progressive than the AFS which was adapted from pre-monopoly Russian capitalism.

Marx’s analysis of the law of value

While Guevara argued for the adoption of advanced technology he opposed the use of capitalist mechanisms to determine production and consumption. He challenged the Soviet’s reliance on capitalist categories to organise the socialist economy, particularly the operation of the law of value. The dispute about the law of value in transition economies is central to the question about the feasibility of constructing socialism in a country without a fully developed capitalist mode of production. It is integral to problems of accumulation, production, distribution and social relations. Communism implies a highly productive society in which conditions exist for distribution of the social product based on need, not surplus-generating labour time. However, the countries which have experimented with socialism have been underdeveloped, lacking the productive base for the material abundance implied by communism. The Soviet solution was to rely on the operation of the law of value to hasten the development of the productive forces, applying the profit motive, interest, credit, individual material incentives and elements of competition to promote efficiency and innovations. Guevara argued that these were not the only levers for fostering development. The BFS was the expression of his search for an apparatus to increase productive capacity and labour productivity without relying on capitalist mechanisms which undermine the formation of new consciousness and social relations integral to communism.

Between 1963 and 1965 these questions were examined in Cuba during the Great Debate on socialist transition. To the extent that commodity production and exchange through a market mechanism continued to exist after the Revolution in Cuba, it was clear to all participants in the Great Debate that the law of value continued to operate. The social product continued to be distributed on the basis of work done. However, the disagreements were about the conditions explaining the law’s survival, its sphere of operation, the extent to which it regulated production, how it related to the ‘plan’ and whether the law of value should be utilised or undermined, and if so, how. This discussion was linked to practical questions such as how enterprises should be organised, how workers should be paid and whether goods should be exchanged between state enterprises as commodities.

Guevara agreed that the law of value remained under socialism but argued that measures taken by the Revolution to undermine the capitalist market meant that the law could not serve as the dynamic catalyst to productivity and efficiency in the same way as it did under capitalism.[8] Socialisation of the means of production and distribution had ‘blunted’ the tools of capitalism.[9] Marx described a commodity as a good which changes ownership, from the producer to the consumer. Consistent with this definition, Guevara insisted that products transferred between state-owned enterprises did not constitute commodities because when they were transferred from one state factory to another there was no change in ownership. The state itself should be considered as one big enterprise.[10] For Guevara commodity-exchange relations between factories threatened transition, via ‘market socialism’, to capitalism. He stressed central planning and state regulation as substitutes to such mechanisms.

The Soviet’s argued that commodity production, the law of value, and money would disappear only when communism was achieved, but that to reach that stage it was necessary to use and develop the law of value as well as monetary and mercantile relationships. Guevara disagreed:

‘Why develop? We understand that the capitalist categories are retained for a time and that the length of this period cannot be predetermined, but the characteristics of the period of transition are those of a society that is throwing off its old bonds in order to move quickly into the new stage. The tendency should be, in our opinion, to eliminate as fast as possible the old categories, including the market, money, and, therefore, material interest – or, better, to eliminate the conditions for their existence.'[11]

For Guevara the task was not to use the law of value nor even hold it in check, but to define its sphere of operation and make inroads to undermine it – to work towards its abolition, not limitation. He developed many policies within the BFS to attempt just that.[12] In February 1964, Guevara concluded: ‘We deny the possibility of consciously using the law of value, basing our argument on the absence of a free market that automatically expresses the contradiction between producers and consumers… The law of value and planning are two terms linked by a contradiction and its resolution.'[13] For Guevara, centralised planning was the fundamental characteristic of socialist society. He conceded only: ‘the possibility of using elements of this law [of value] for comparative purposes (cost, “profit” expressed in monetary terms)’.[14]

The protagonists in Cuba were well-informed about the broader debate on incentives and financial autonomy contemporaneously underway in the eastern European socialist countries – a response to the problems of economic stagnation, low productivity and efficiency, particularly in comparison with economic growth in the developed capitalist world.  In July 1964 Guevara told colleagues that he had been reading analyses from the socialist bloc, including the resolutions of the 14th Congress of the Polish Communist Party: ‘The solution that they are proposing for these problems in Poland is the complete freedom of the law of value; that is to say, a return to capitalism.'[15] Commenting on the push to ‘liberalise’ the socialist economies Guevara said: ‘The theory is failing because they have forgotten Marx’.[16] Instead of Capital, the Soviet Manual of Political Economy had been turned into a bible.

Marx characterised the psychological or philosophical manifestation of capitalist social-relations as alienation and antagonism; the result of the commodification of labour and the operation of the law of value. For Guevara, the challenge was to replace the individuals’ alienation from the productive process, and the antagonism generated by class relations, with integration and solidarity, developing a collective attitude to production and the concept of work as a social duty. Capitalist competition created the drive to increase productivity through technological innovations and increasing exploitation. Alienation and antagonism increase with productivity. Under socialism, the development of the productive forces could be less accelerated, but it should be accompanied by a growth of consciousness. For Guevara, efforts to change consciousness must be incorporated into socialist transition at the earliest stage.

Critique on the Soviet Manual of Political Economy

In April 1965, Guevara left Cuba to lead a Cuban military mission in the Congo. The guerrillas were defeated and Guevara stayed in Tanzania and the Czech Republic between 1965 and 1966 where he began work on a comprehensive analysis of the political economy of socialist transition. In preparation for this work, Guevara took notes on the Soviet Manual, applying his theoretical arguments expounded in the Great Debate to that text. The notes were not written for publication, nor brought together as text. They were comments responding to specific paragraphs of the Manual; notes to himself, including indications of areas for further study.[17]  

Guevara criticised the Manual’s mechanistic adaptation of classical Marxist conceptions of class relations between the bourgeoisie and the working class, without considering the effects of imperialism which created a privileged working class in the advanced capitalist countries as well as beneficiary sectors in the exploited nations. He denounced as opportunism the Manual’s attempts to air-brush the inherent violence of class struggle integral to the transition from capitalism to socialism.

Turning to the period of transition, Guevara argued that the USSR’s Kolkhoz collective farm system was not a characteristic of socialism and that cooperatives were not a socialist form of ownership – they generated a capitalistic superstructure which clashed with state ownership and socialist social relations imposing their own logic over society. Guevara systematically refuted the so-called laws of socialism cited by the Manual, particularly the law of constant rising worker productivity – which he called an outrage: ‘It is the tendency that has driven capitalism for centuries.'[18]  He condemned as ‘dangerous’ the Soviet’s policy of peaceful co-existence and economic emulation with the advanced capitalist countries and pointed to serious disagreements between the socialist countries, blaming them on unequal exchange and the imposition of capitalist categories in trade relations.[19]

While declaring his daring, respect, admiration and revolutionary motives, Guevara announced that Lenin was the ultimate culprit because the New Economic Policy (NEP) which he had been forced to introduce in 1921 imposed a capitalist superstructure on the USSR. The NEP was not installed against small commodity production, Guevara stated, but at the demand of it. Small commodity production holds the seeds of capitalist development. He was certain that Lenin would have reversed the NEP had he lived longer. However, Lenin’s followers: ‘did not see the danger and it remained as the great Trojan horse of socialism, direct material interest as an economic lever.'[20] This capitalist superstructure became entrenched, influencing the relations of production and creating a hybrid system of socialism with capitalist elements that inevitably provoked conflicts and contradictions which were increasingly resolved in favour of the superstructure – capitalism was returning to the Soviet bloc.[21]

Guevara’s notes offer a profound criticism of Soviet political economy. He himself warned that some would misinterpret his proposed work as rabid anti-communism disguised as theoretical argument, but asserted that the inability of bourgeois economics to criticise itself, pointed out by Marx at the beginning of Capital, was seen in contemporary Marxism. He dedicated his work to Cuban students who go through the painful process of learning ‘eternal truths’ in eastern European manuals. He concluded that: Humanity faces many shocks before final liberation, but we cannot arrive there without a radical change in the strategy of the first most important socialist powers.[22]

Conclusion

This paper has summarised the analysis which led Guevara to forewarn the collapse of socialism in the socialist bloc. He made an important contribution to both the theory and practice of constructing socialism. He hoped to persuade socialist countries to gradually replace capitalist mechanisms during transition and offered alternative policies to serve this function. His warnings were not heeded and, for the reasons which Guevara predicted, among others, capitalism returned to all those countries. In Cuba, his analysis was revisited in the mid-1980s in the period known as Rectification which pulled the island away from the Soviet model before it collapsed, arguably contributing to the survival of Cuban socialism.

Notes

[1] Ernesto ‘Che’ Guevara, ‘Reunion Bimestrales’, 20 January 1962, in El Che en la Revolución Cubana: Ministerio de Industrias, tomo VI. La Habana: Ministerio de Azúcar, 1966, 147.

[2] Guevara, Apuntes Críticos a la Economía Política. La Habana: Ciencias Sociales, 2006, 27 & cited by Orlando Borrego in El Camino del Fuego, la Habana: Imagen Contemporánea, 382.

[3] This paper assumes knowledge of the laws governing the operation of the capitalist system expounded by Marx in Capital.

[4] Miguel Figueras, interview, 27 January 2006, Enrique Oltuski, interview, 15 February 2006 & Alfredo Menéndez, interview, 17 February 2005.

[5] Guevara, Bimestrales, 21 December 1963, 420.

[6] Guevara, Bimestrales, 14 July 1962, 289.

[7] Guevara, Bimestrales, 28 September 1962, 318-9.

[8] Guevara, ‘On the Concept of Value’ in Bertram Silverman (ed) Man and Socialism in Cuba: The Great Debate, New York: Atheneum, 234.

[9] Guevara, ‘Socialism and Man in Cuba’ in Silverman (ed) Socialism, 342.  

[10] Guevara, ‘On the Budgetary Finance System’, in Socialism, 143.

[11] Guevara, Budgetary, 42. Guevara’s italics.

[12] My book, Che Guevara: The Economics of Revolution, details these policies.

[13] Guevara, Budgetary, 143.

[14] Guevara, ‘The Meaning of Socialist Planning’ in Socialism, 109.

[15] Guevara, Bimestrales, 11 July 1964, 505.

[16] Guevara, Bimestrales, December 1964, 566-9.

[17] First published in Havana, February 2006 as Apuntes, cited above.

[18] Guevara, Apuntes, 52.

[19] Guevara, Apuntes, 91-2, 185-6, 192-3.

[20] Guevara, Apuntes, 112.

[21] Guevara, Apuntes, 27.

[22] Guevara, Apuntes, 25-28 & Borrego, Camino, 381-383.

Source

Che Guevara and the Political Economy of Socialism

Ernesto Che Guevara visiting the tractor factory in Brno, Czechoslovakia, October 27, 1960.

Rafael Martinez

Che Guevara is widely known to the world as the romantic-idealist revolutionary. The economic thought of Che Guevara has not really been widely publicised as the Argentinean born revolutionary is commonly known for his works on the guerrilla warfare, whose underlying idealist and voluntarist approaches to the struggle of the oppressed masses against capitalism and imperialism have been exposed and rejected altogether by the Marxist-Leninists. It is most appropriate, however, to pay special attention to Guevara’s economic works, as his contribution to the economic transformation of Cuba during the early stages of the revolutionary process was central and was highly criticised by the ideologists of modern revisionism, both within and outside the country.

Che participated in making up the agrarian reform law in 1959. In October 1959 he was appointed director of the Department of Industrialisation, which was created by INRA (Instituto Nacional de la Reforma Agraria or National Institute of the Agrarian Reform). At that time most of the industry was still in the hands of private owners. Guevara undertook the task of studying the economy of the island and establishing the guidelines of building up Cuban industry. According to Orlando Borrego, author of ‘Che el camino del fuego’ (Imagen Contemporanea, Havana 2001), the department started off without a single industry under its jurisdiction nor a ‘budget of its own to finance supplies, investments and other expenses’ to manage the few companies that passed to its jurisdiction later in the year. In November 1959 Guevara was appointed head of the National Bank, although he never stopped overseeing the work of the department of industrialisation to where he returned within the next year.

It is not till October 1960, when the Cuban Government decrees the immediate nationalisation of commercial and industrial enterprises including the sugar cane industry, that the Department of Industrialisation becomes a full-fledged body for the organisation of industrial production on a massive scale. His leadership in the Department of Industrialisation led Guevara to become the Cuban minister of industry in February 1961, which had the task to organise state industry following massive nationalisation.

At this point Guevara faces the challenging task to organise most of the country’s industrial production on the basis of an ill-defined (from the point of view of socialist construction) revolutionary process. Despite the success of the anti-imperialist struggle undertaken by the Cuban Revolution, its leadership lacked knowledge of the political economy of Marxism-Leninism. Che Guevara, without any doubt, is the member of the Cuban leadership who takes most seriously the study of political economy, which he did in parallel to all the administrative and organisational tasks that he was assigned by the Cuban Revolution. The study of Marxist political economy and the economic discussions that were triggered during the process of organisation of the Cuban industry become the central topic in Guevara’s life during the first half of the ‘60s. This period of exploration and creativity comes for the most part to an end when, in 1965 Che renounces his responsibilities as the Minister of Industry, following a heated economic debate, referred to by many as the ‘Great Debate’, which reached its climax in 1963-1964.

Strong divergences between the pro-Soviet economic line and Guevara’s plan of industrialisation brought to an end the participation of the Argentinean revolutionary in the internal affairs of the Cuban revolution. Guevara embarks on a ‘quixotic’ military campaign to aid and create revolutionary processes in Africa and Latin America, which concludes with his assassination in Bolivia, in 1967.

Castro remembers Che in a well-known speech given in 1987, in the midst of the so-called process of rectification, by denouncing a number of gross deformations in the economic life of the island and corruption of moral standards. Castro calls upon the population with an appeal of the highest moral standards embodied by the life of the great revolutionary, and admits to the negative consequences of departing from Che’s economic thought:

‘Che was radically opposed to using and developing capitalist economic laws and categories in building socialism. He advocated something that I have often insisted on: Building socialism and communism is not just a matter of producing and distributing wealth but is also a matter of education and consciousness’ (Fidel Castro in ‘Che Guevara, Economics and politics in the transition to socialism’, Pathfinder, New York, 2003, p. 39).

In the midst of open appeals to revive what many in Cuba call the ‘Che’s dream’ a lot of confusion is fostered about the interpretation and originality of Guevara’s economic thought. Twenty years after his assassination, Cuban scholars Fernando Martinez Heredia, and specially, Carlos Tablada, revived the discussions concerning Guevara’s contribution to the practice of socialist construction in Cuba and to the economic theory of the transitional epoch in general. Unfortunately, most scholars in Cuba consider Guevara’s economic thought in isolation from the theory of political economy of socialism developed before the revisionist political economy became widely accepted in the Soviet Union and the former People’s Democracies of Eastern Europe in the 1960s.

Outside the country, efforts have been made to reconcile Guevara’s economic thought with Trotskyism and neo-Trotskyite tendencies. Neo-Trotskyite elements around the world, not without encouragement from within Cuba, try to portray Guevara’s economic thought as a reaction to the economic line imposed by the bureaucratic castes in the Soviet Union, by completely ignoring, more correctly suppressing, Guevara’s open support to Stalin in questions of the construction of socialism. It is silenced that Guevara quoted Stalin on multiple occasions in his economic works published in Cuba and the fact that the core of his economic theory, the budgetary finance system, bears strong similarities to the economic ‘model’ of development, which had become ‘standard’ in the former People’s Democracies of Eastern Europe during the post-war period up until Stalin’s death. Trotskyism, neo-Trotskyism and many in Cuba exacerbate Guevara’s idealist mistakes present in both his political and economic thoughts and turn Che into some sort of humanist socialist, who de facto suppressed the weight of the objective character of the economic laws of socialism in favour of a leading role of socialist education and consciousness (which, unfortunately, is true to a considerable degree).

Discussions about the controversial role of Che Guevara in the Cuban revolution during the early stages of the construction of the new economy have been revived in recent years. More and more unpublished documents are slowly coming to light. One of the most significant efforts developed in this direction is led by the Centro de Estudios Che Guevara, based in Havana and located in the house where Guevara and his family used to reside during the first half of the sixties. This association possesses direct access to Guevara’s personal library, which contains numerous volumes in which he used to make annotations. Ambitious plans have been revealed to publish nine volumes with materials covering numerous aspects of the political life of Che Guevara, which hopefully will throw important light on the evolution of Guevara’s thought as a Marxist.

One of the most enlightening documents published in recent years corresponds to a letter sent by Che, while based in Tanzania, to Armando Hart Dávalos on the need to publish in Cuba works on philosophy. The authenticity of this letter does not seem to be controversial as it was published in a Cuban journal and made available to the public. In this letter Guevara outlines a basic plan for the publication of texts in philosophy, subdivided into 8 groups:

In Cuba there is nothing published, if one excludes the Soviet bricks, which bring the inconvenience that they do not let you think; the party did it for you and you should digest it.

It would be necessary to publish the complete works of Marx, Engels, Lenin, Stalin [underlined by Che in the original] and other great Marxists.

Here would come to the great revisionists (if you want you can add here Khrushchev), well analyzed, more profoundly than any others and also your friend Trotsky, who existed and apparently wrote something (Che Guevara, Letter to Armando Hart Dávalos published in Contracorriente, Havana, September 1997, No. 9).

In the present article we will try to briefly cover the main elements of Guevara’s economic thought by means of establishing analogies with the Marxist-Leninist economic theory of the transitional society. Further, we will discuss the absurd allegations of Trotskyism that the Soviet revisionist leadership inflicted on Guevara. We will conclude with a brief exposition of what are, in our opinion the two major mistakes committed by Guevara in his economic works: idealism and mechanicism.

Budgetary System versus Financial Self-Management

At the centre of Guevara’s economic thought stands the budgetary system, which Che implemented in the enterprises organised by the ministry of industry between 1961 and 1964. The budgetary system is formulated by Guevara as a reaction against what had been established in the Soviet Union and the former People’s Democracies of Eastern Europe under the system of economic accounting (usually referred by us as market-like economic accounting, in order to distinguish it from the more generic concept of economic accounting), which the followers of post-Stalin Soviet revisionism posed as a model of development in Cuba. It is within the context of the revision of the Marxist-Leninist principles of the political economy of socialism by the Soviet revisionist leadership that the study of Guevara’s budgetary system needs to be analysed and appreciated.

Despite strong elements of mechanicism and schematism inherent to Guevara’s presentation for a case in favour of the centralisation of industrial production and the establishment of forms of management and interrelations between individual producing subjects and the state, the budgetary system embodies the means, however primitive, which served the purpose for the application and success of the centralised planned principle of the economic development in a backward country. This is the rationale behind Guevara’s formulations, which represents in the main the basic prerequisite for a more or less rapid industrialisation of the island, which he considered to be the highest priority within the process of socialist construction.

Many in Cuba portray Guevara’s budgetary system elaborated for the specific conditions of Cuba, which in a sense Che ‘invents’ a particular model that suits his more or less utopian view of the transition to the socialist society. Thus Guevara’s thinking is studied in isolation from the historical epoch, which corresponds to the epoch of the restoration of capitalism in the Soviet Union and the former People’s Democracies. At most, Guevara’s economic thinking is viewed as an alternative to the ‘neo-Stalinist’ command-administrative system undertaken by the Soviet leadership. This view was revitalised in Cuba towards the end of the 1980s when the Soviet economy and the whole so-called ‘socialist’ system showed clear signs of decomposition. It is enlightening, however, to see that some leading economists in the island do admit that Guevara’s economic thought did not come out of the blue:

‘In retrospective, the budgetary system is a contribution of great value. We would not say – and you know it well – that Che invented the budgetary system. It already came from the socialist countries; in the Soviet Union for a period of time the budgetary system ruled many aspects of the economy’. (Carlos Rafael Rodriguez in ‘Che Guevara, Cuba and the Road to Socialism’, New York, 1991, pp. 39-30. Translated from Spanish.)

Needless to say Rodriguez refers to the socialist economic model developed under Stalin. Rodriguez, however, wrongly attributes to Guevara the view that in the transition to higher forms of socialism, or full socialism, the budgetary system could be applied to the entire economy; the entire economy could allegedly function as one big enterprise, with one social fund to meet the needs of production and distribution. Much to the contrary, Guevara formulates the budgetary system as a means to meet the immediate needs posed by the organisation of the State industry and, as will be seen in the next section, admits to the existence of commodity-money relations between the state and other production objects, hence he admits the existence of forms of production other than state owned.

The budgetary system is conceived by Che as an opposite of the model established in the Soviet Union and the former People’s Democracies of Eastern Europe after Stalin’s death. Guevara exposes the basic differences between the budgetary system and the market-type of economic accounting or so-called financial self-management, as early as in 1961, i.e. the very early stages of the socialisation of industry in the country. Guevara’s thinking in favour of the centralisation of the State industry predates the ‘Great Economic debate’, and it is clear to us that Che had conceived the budgetary system long before he sees himself engulfed in a heated discussion with the numerous supporters of financial self-management in the island. We have every reason to believe that he was in some more or less systematic way acquainted with the history of the Soviet economy and the general elements of the socialist economy during Stalin’s times.

Guevara rejects from the very beginning the concept of free enterprise within the socialist sector, which is embodied by the ability of the individual economic subject to act as a more or less independent producer, since

‘…in the socialist countries, the enterprise possesses a bank credit, acquires money, produces with the money that it receives, sells its production, and then grants to the State part of the profit and part of this profit is preserved for internal needs. The difference is that our company does not sell, but delivers products and workers are awarded through the State’ (Che Guevara, Conference ‘Economy and Plan’ of the People’s University, 1961. Translated from Spanish.)

In Guevara’s system the enterprise does not sell, as the commodity-money becomes effective both in form and content only when the product is alienated by an independent producer or the individual consumer. Guevara understands the retribution of the worker in the socialist enterprise as an operation, in which in essence the socialist toiler establishes an employer-employee relationship with the socialist state, bypassing the enterprise. We believe he considers this relationship from the point of view of the essence of the labour relationship, as in reality this relationship has unavoidably to take the form of employment via the individual enterprise.

As opposed to the revisionist system of financial self-management, labour circulates among the individual enterprises of the state sector and between the enterprises and the State via the form of allocation or assignments according to contracts stipulated by the socialist plan:

‘To elaborate a budget through which the enterprise will be assigned necessary funds by the state to make effective contracts…; and also to transfer to public accounts the revenue from sales.’ (Che Guevara, op. cit. in ‘Collective Discussion: Unique Decision and Responsibility’, p. 3. Translated from Spanish.)

In Guevara’s system the enterprise functions as an aggregate of a larger enterprise, which does not possess financial resources with which to make its own decisions in terms of production and reproduction. Since the socialist enterprise:

‘The company does not have resources of its own; therefore its income is transferred to the national budget’ (Che Guevara, op. cit. in ‘Considerations on Expenses’, p. 46. Translated from Spanish.)

Guevara is adamantly opposed to any form of exchange among socialist enterprises in the socialist sector other than allocation of resources. The circulation of labour within the socialised sector is viewed by Guevara as an aggregation of labour in a complex productive chain. In this system the enterprises are not able to establish labour exchange independently from the plan, since the entire productive activity of the enterprise is dictated by it. The state, in the form of the State Bank is the beginning and the end of labour flow concerning the productive activity of the socialist enterprise: it acquires the necessary financial means to acquire the means of production and it deposits the revenue in the Central Bank. These resources are then utilised by the socialist planning system to provide for extended reproduction of the individual productive unit, for capital investment or non-productive social needs. In this sense the enterprise does not extract profit per se; it transfers a positive balance between the production cost and the income and it is the socialist state which makes the final decision according to the plan as to the fate of this positive balance.

The concept of socialist planning in Guevara’s system is closely linked to the concept of profitability of the whole productive system. The effectiveness of the socialist economy is not the results of the mechanical summation of individual enterprises. A positive balance in the arithmetic sum of individual profits is possible in the capitalist system during times of expansion, although it becomes negative in times of recession. Regardless of the fact that the socialist productive system does not know recession or crises, the socialist productive system displays the greatest rates of growth not just because the arithmetic aggregation of individual profitability amounts to a positive balance. The advantage of the socialist mode of production over capitalism lies in the planned character of the economy, that the socialist state is in a position to decide at the scale of the whole productive system, not the coordination of individual producers but the regulation of labour flow among socialist enterprises. While it is of paramount importance that the productive unit be most profitable by means of maximum reduction of production costs, the efficiency of the economy needs to be assessed as a whole.

‘Since this system is based on the central control of the economy, the relative efficiency of an enterprise would become just an index; what really matters is the total profitability of the entire productive system’ (Che Guevara, op. cit. in ‘Considerations on Expenses’, p. 48. Translated from Spanish.)

This concept, which is a more complex concept with respect to the profitability of the individual enterprise, had been stated explicitly by Stalin in Economic Problems. In arguing against the right-wing deviationists, the only way to understand that certain sectors of the economy may function without profit or even producing losses over a certain period of time is to introduce a more complex concept of profitability of the whole socialist economy:

‘If profitableness is considered not from the standpoint of individual plants or industries, and not over a period of one year, but from the standpoint of the entire national economy and over a period of, say, ten or fifteen years,… then the temporary and unstable profitableness of some plants and industries is beneath all comparisons with that higher form of stable and permanent profitableness which we get from the operation of the law of balanced development of the national economy and from economic planning…’ (J.V. Stalin, Economic Problems of Socialism in the USSR,Foreign Language Publishing House, Moscow 1952, pp. 28-29.)

Many have been led to believe that the establishment of socialised planning in certain areas of the State-owned sector during the transitional economy is a dangerous utopia. The transition to NEP is commonly used as a historical example, which allegedly illustrates that socialised forms of organisation do not correspond to the economic conditions given in a backward, agricultural country. Much to the contrary, not only the implementation of market-like economic accounting in the State industry is a relatively short-lived phenomenon in the economic history of the Soviet Union, it was soon realised that the NEP-style approach could lead to catastrophic consequences if the market-like economic accounting were to be imposed on all the areas of the State sector. Since the first stages of the transition from the economy of War Communism to the liberalisation of the Soviet economy, the Soviet leadership expressed worries that Lenin’s plans for the industrialisation of the country would be jeopardised if market relations were to be made effective in all the State-owned sectors. Already in 1923, the XII Congress of the Russian Communist Party (Bolshevik) expressed ample concerns:

‘On the other hand, heavy industry, which has barely entered in contact with the market and which depends completely on State contracts, needs for its reconstruction large and well-calculated financial resources from the State. This also applies to a great degree to railway and sea transport.’ (Decisions of the Soviet Government on Economic Questions, Moscow 1957, Volume 1, p. 380. Translated from Russian.)

Despite what right-wing revisionism led many to believe, the Soviet government since the early stages of the NEP established a line of demarcation within the sectors I and II of the economy. While light industry displayed significant growth during the early stages of the liberalisation of the economy, mostly due to the revival of market relations, heavy industry showed little or no signs of flourishing under the conditions of market-style economic accounting. If the market-type economic accounting were to be imposed on heavy industry, if the Soviet plan, regardless of the level of development of the forces of production and the correlation of forces within the various sectors of the economy and the weight of non-socialist forms of production, were to deny heavy industry large long-term financial assistance for a sustained process of re-production, this sector would be forced into recession. The plans for the speedy industrialisation of a vast and backward (both technically and culturally) country would be doomed and with it collectivisation and socialist construction.

‘The interrelations between light and heavy industries cannot be resolved by means of the market, as this would threaten to liquidate heavy industry in the next few years; heavy industry could recover, but this time as a result of the anarchic development of the market and on the basis of private property. (Ibid. p. 382. Translated from Russian.)

The socialist law of development, according to which the industry of means of production should develop faster than light industry and agriculture, necessarily leads a more or less significant fraction of the forces of production owned by the socialist state to operate according to laws of labour distribution and organisation different from those inherited from the capitalist form of production. While market relations to a considerable degree were temporarily allowed by the NEP to regulate production and labour distribution among more or less disseminated and independent economic units in the State industry, the Soviet State was forced since the beginning to define the concretisation of this law of socialist production, in a sense breaking with NEP itself. The establishment of socialist planning on the basis of the socialised mode of production in certain sectors of the economy holds absolute character. This principle holds regardless of the level of development of the forces of production in the economy of the country in transition to socialism as a whole. The level of socialisation of the State sector does strongly depend upon the concrete-historical conditions of the country in transition. However, the State is bound since the very beginning to establish a socialist planned principle to operate in a direct, socialised way (not by means of the market) on certain sectors of the economy, primarily on the sector I. This is the basic principle of the transitional economy that Guevara tried his best to uphold by advocating the budgetary system, as a system opposed to the system of market-type economic accounting proposed by the followers of Soviet revisionism in the island.

As will be touched upon in more detail, Guevara’s economic thought, the budgetary system that he advocated is completely opposed to Trotsky’s concealed right-wing economic theories. Trotsky opposed since the early stages of NEP, all the way till the end of his political career the establishment of a genuine planned principle in certain sectors of the State sector, by advocating the absolute and universal character of NEP:

But the New Economic Policy does not flow solely from the interrelations between the city and the village. This policy is a necessary stage in the growth of state-owned industry. Between capitalism, under which the means of production are owned by private individuals and all economic relations are regulated by the market –I say, between capitalism and complete socialism, with its socially planned economy, there are a number of transitional stages; and the NEP is essentially one of these stages.

Let us analyze this question, taking the railways as a case in point. It is precisely railway transportation that provides a field which is prepared in the maximum degree for socialist economy… The railway lines, not only those privately owned, but also the state-owned lines, settled their accounts with all the other economic enterprises through the medium of the market. Under the particular system this was economically unavoidable and necessary because the equipment and development of a particular line depends upon how far it justifies itself economically. Whether a particular railway is beneficial to the economy can be ascertained only through the medium of the market.’ (L.D. Trotsky, ‘The First Five Years of the Communist International’, Volume 2, New Park Publications, London, 1953, pp. 233-4.)

Guevara’s budgetary system is the means for the industrialisation of Cuba. One of the fundamental principles of the socialist economy is based on the development of industrial production, mainly heavy industry, as the basis and engine of the development of the socialist economy. Imperialist domination is based upon the concentration of industry and technology in the hands of imperialist corporations. Exploited countries are deprived of the means and necessary knowledge to secure the development of labour productivity, a key element to sustained development of the forces of production.

In order to overcome economic backwardness and the relations of dependence on the imperialist countries, i.e. the ultimate goal of a genuine process of national-liberation, it is imperative to turn around the character of economic relations with the outside world. This implies a deep re-structuring of the economies, which for long years have been geared towards fitting the economic needs of the imperialist countries, and to turn these countries into self-sufficient and prosperous socialist industrial ones. Genuine independence, true anti-imperialism is no more than rhetorical statements without massive policies of socialist industrialisation, which is the material basis for long-term and sustained independence.

Over a hundred years of national liberation movements have taught us that the socialisation of the means of production, as opposed to half-measures disguised by pseudo-socialist phraseology, is the only way towards national independence. Here lies the essence of the internationalist policies of the Soviet State during the post-war period.

The economies of dependent countries, such as Cuba back in the 1950s, are based upon the extraction and the early stages of manufacturing of raw materials. The main source of revenue of Batista’s Cuba was the export of sugar, whose price in the international market was out of the control of the country and, as repeatedly pointed out by the leaders of the Cuban revolution, undershot the actual value.

The only possible way that economically and culturally backward countries can attain economic and sustained political independence, lies in the development of heavy industry, which is the only possible way to lay the foundations for sustained economic growth. This fundamental point of the socialist construction lies at the centre of attention of Guevara’s economic thought and to it he devoted most of his practical and theoretical efforts while remaining in office.

Commodity-Money Relations and the Law of Value

In this section we will briefly cover Guevara’s understanding of the role of commodity-money relations and the law of value in the socialist industry. At this point we lack written materials to throw light on his attitude towards the agrarian reform performed during the early stages of the Cuban revolution. His understanding of the collectivisation of the large mass of petty producers is also unknown to us, although we hope that in the near future archival materials may be made available to the public in Cuba.

As illustrated in the previous section, at the centre of Guevara’s economic thought stands the model of budgetary system. This system is intimately related to Guevara’s understanding of the role of plan, which, as discussed, fundamentally differs from that envisioned by right-wing revisionism in the Soviet Union and the former People’s Democracies in Eastern Europe. Much to the contrary, it bears close resemblance to the conception of economic planning, which prevailed in the Soviet Union before Stalin’s death and stands in line with the economic policies that had become ‘standard’ in the former People’s Democracies in Eastern Europe in the period of 1948-1953.

Guevara’s attitude to the role of market categories and relations are consistent with his understanding of plan and are very close to Stalin’s formulations in Economic Problems. Guevara explicitly denies the need for commodity exchange between socialist enterprises and categorically denies the commodity character of the means of production. He supports the correct view that commodity exchange involves change of ownership. Commodity exchange between state enterprises is viewed by the Argentinean as a contradiction per se, since in the budgetary system the socialist enterprise is an organic element of a bigger enterprise, the State. Within this system the labour among enterprises does not adopt the form of commodity exchange. Means of production, financial resources are not owned by the socialist enterprise, as the latter lacks its own account and revenue is automatically deposited in a socialised account. In this system, the means of production are allocated to a given production unit according to the needs and future perspective of economic development and dictated by a centralised plan.

Guevara does not deny the existence of commodity production and the coexistence of different modes of production. He supports Stalin’s views that commodity relations are not inherent to the socialist sector but that their existence is due to the presence of different forms of property within the Cuban economy. As opposed to the Soviet Economy in Stalin’s time, the Cuban countryside had not undergone the process of collectivisation of the petty producer. In the concrete-historical situation of Cuba, the incipient socialist industrial sector had to coexist with a large mass of independent producers. However, this concrete-historical circumstance does not prevent the socialist sector, however small and poorly organized, to operate under a different regulator of production than that operating in the countryside. Guevara writes:

‘We believe that the partial existence of the law of value is due to the remnants of the market economy, which also manifests itself in the type of exchange between the State and the private consumer’ (Che Guevara, op. cit. in ‘On the Budgetary System’, p. 95. Translated from Spanish).

This statement is very close to Stalin’s well-known statement given in Economic Problems:

‘But the collective farms are unwilling to alienate their products except in the form of commodities, in exchange for which they desire to receive the commodities they need… Because of this, commodity production and trade are as much a necessity with us today as they were thirty years ago…’(J.V. Stalin, Economic Problems of Socialism in the USSR, Foreign Languages Publishing House, Moscow 1952, p. 19-20.)

In addition, as pointed out by Guevara, there remains the need for commodity-money bonds between the State and the private producer, as the worker in socialism still receives a significant fraction of the social fund for the satisfaction of individual needs in money terms. The exchange between the state and the individual producer is performed under the form of a commodity exchange, as

‘…this transfer occurs when the product leaves the state sector and it becomes property of an individual consumer’ (Che Guevara, op. cit. in ‘Considerations on Expenses’, p. 46. Translated from Spanish.)

With the socialisation of all the means of production and the liquidation of individual and collective forms of production, there would be no need for commodity-money exchange in socialism. As a matter of fact, the realisation of the socialist principle of distribution does not necessarily imply the existence of commodity-money relations, as a category of production. These views were ‘exposed’ and refuted by Soviet economists, who after a series of discussions re-wrote chapters in the Manual of Political Economy regarding the political economy of socialism.

Naturally, these views were also not shared by many economists in Cuba, as manifested in a more or less full-fledged controversial discussion during 1963-1964. For instance, Alberto Mora (Minister of Foreign Trade during that time) in 1963 openly attacked Guevara’s views, by comparing them with Stalin’s, which were published in Economic Problems. He rejected Guevara’s theses on the grounds that the most serious ‘scientific’ discussions held in the Soviet Union during the second half of the 1950s and early sixties indicated that Stalin’s views were wrong, that the law of value operates in socialism as a regulator of production, as the products in the socialist economy remain and will remain commodities all the way till communism:

‘When some comrades deny that the law of value operates in the relations among enterprises within the State sector, they argue that the entire State sector is under single ownership, that the enterprises are the property of the society. This, of course, is true. But as an economic criterion it is inaccurate. State property is not yet fully developed social property that will be achieved only under communism.’ (A. Mora, in ‘On the operation of the law of value in the Cuban Economy’, published in Man and Socialism in Cuba, Atheneum, New York, 1973, p. 227).

The well-known Trotskyite economist, Ernest Mandel, who was very active during what he called the ‘Great Debate’ in Cuba, enters into a long-standing controversy with Charles Bettelheim, a French right-wing revisionist scholar. The latter also became active during the economic debate, this time as a fervent supporter of the ‘socialist-market’ conception advocated by the pro-Soviet economists in the island. Despite Mandel’s views that means of production in the socialist economy do not circulate as commodities, he is very keen on exposing Stalin’s views advocated by Guevara with regard to the causes of the law of value in the socialist sector. In the section of the ‘Historical conditions leading to the extinction of mercantile categories’ of a well-publicised article in Cuba, he states:

‘Although we have criticized several of comrade Bettelheim’s positions, we agree with him completely in rejecting Stalin’s theory that the basic reason for the mercantile categories in the Soviet economy is the existence of two forms of socialist property: ownership by the people (that is, the State) and ownership by more limited social groups (essentially the Kolkhozy)’. (E. Mandel, in ‘On the operation of the law of value in the Cuban Economy’, published in Man and Socialism in Cuba, Atheneum, New York, 1973, p. 70.)

Mandel has an opinion of his own and does not need to refer to the Soviet pseudo-science to ‘expose’ Guevara’s ‘primitivism’. The author advocates that only the abundance of consumer goods, which are closely linked to the development of forces of production, will create the objective conditions for the abolition of commodity-money relations in the sphere of private consumption. Moreover, he seems to be proud that

‘The new program of the CPSU, approved by the XXII congress, incorporated this idea as set forth in our Traite d’Economie Marxiste’ (E. Mandel, in ‘On the operation of the law of value in the Cuban Economy’, published in Man and Socialism in Cuba, Atheneum, New York, 1973, p. 71).

Guevara advocated the correct view that the law of value does not operate within the socialist sector as a regulator of production. He is able to grasp, unlike his detractors, a crucial element in the political economy of socialism:

‘We insist on the analysis of the cost, since part of our conception refers to the fact that it is not strictly necessary that cost of production and price coincide in the socialist sector’. (Che Guevara, op. cit. in ‘Considerations on Expenses’, p. 47. Translated from Spanish.)

Guevara understood that the price setting in the socialist sector, as a quantifier of the flow of labour circulating among different subjects of the state industry, does not necessarily have to coincide with the cost of production. If the labour exchange between different sectors of the socialist economy were to be governed by the exchange according to equal value, less profitable or even not profitable enterprises would not be able to survive and the process of extended reproduction of the socialist economy would be brought to its knees. If the law of value is forced to operate as a regulator of the proportions of labour exchanged between enterprises in the socialist sector it would not be possible to overcome the disproportions between sectors of the economy, which are inherited from capitalism, let alone colonialism and neo-colonialism. This consequently leads to a more complex concept of profitability of the socialist economy, which was touched upon in the previous section, which Stalin formulated in Economic Problems and which Guevara embraces wholeheartedly.

It is true that the abstract formulation that prices in the socialist sector do not necessarily correspond to the cost of production contains within itself a strong potential and it represents a serious step forward in the evolution of the understanding of political economy of socialism. This statement represents a tremendous step forward with respect to the theories of right-wing revisionism, which does not conceive labour exchange outside the boundaries of commodity-money relations. However, this statement does solve right away the most intricate problem of the political economy of socialism, which is to concretise what are the actual proportions of labour that correspond to the historical-concrete situation and the development of the forces of production and forms of management of a given country. This is a titanic task that needs to be resolved by the revolutionaries of a given country, which Guevara genuinely and with the best of his abilities tried to solve for the concrete conditions of Cuba.

Guevara is an advocate of the strictest economic accounting, for the same reasons that Stalin criticised many Soviet managers and plan making for neglecting the operation of the law of value as a strong instrument for economic accounting in socialism. Indeed, accounting in value terms proves a powerful tool to evaluate the effectiveness of the socialist enterprise, and this is most appreciated by Guevara:

‘The cost would yield an index of the management of the enterprise; it is irrelevant that these prices are higher or lower than the prices in the socialist sector, or even, in some isolated cases, than those prices used to sell the product to the people; what matters is the sustained analysis of the management of the enterprise…, which is determined by its success or failure to reduce costs’ (Che Guevara, op. cit. in ‘Considerations on Expenses’, p. 49. Translated from Spanish.)

At the end of the day, one of the fundamental goals of the enterprise in socialism as well as in communism

‘…reduces to a common denominator…: the increase of labour productivity as the fundamental basis for the construction of socialism and indispensable premise for communism.’ (Che Guevara, op. cit. in ‘Considerations on Expenses’, p. 51. Translated from Spanish.)

In Guevara’s budgetary finance system, money within the socialist enterprise is used primarily as means of calculation, as a strong algebraic tool for determining the effectiveness of the enterprise, the correctness of the use of the resources granted by the State to the enterprise, a means to determine if the enterprise is doing enough to reduce costs, etc… In his very important article, ‘About the Budgetary System’ he exposes one of the most prominent differences between his conception and the role given to money by the pro-Soviet economists in Cuba within the so called ‘Economic Accounting’ system:

‘Another difference is the way money is used; in our system money operates as arithmetic money, as a reflection, in prices, of the management of the enterprise, which the central organs will analyze in order to control the functioning of the latter.’ (Che Guevara, op. cit. in ‘About the Budgetary System’, p. 80 Translated from Spanish.)

Guevara’s views are consistent with the well-known exposure of Notkin’s ‘marketist’ views by Stalin:

Why, in that case, do we speak of the value of means of production, their cost of production, their price, etc.?

Firstly, this is needed for purposes of calculation and settlement, for determining that the enterprises are paying or running at a loss, for checking and controlling the enterprises. …’ (J.V. Stalin, op. cit, p. 58-59.)

As the economic discussion in Cuba progresses and the contradictions between Guevara’s line and the pro-Soviet economists (including Charles Bettelheim) on the one hand, and the Trotskyite elements in Cuba (Cuban nationals as well as foreigners) on the other, Che has unavoidably to clash with the economic conception advocated by the Soviet revisionists. Towards the end of this discussion, in 1964 Guevara expresses himself in a more and more explicit and eloquent way regarding the differences between his model and the ‘market-socialist’ type of development advocated by the revisionists. The exposition of the differences, which at first, in 1961 Guevara had put in rather mild, almost academic terms, turns controversial and bitter in 1964, leaving no doubt that the contradictions had become irreconcilable and that the Cuban leadership would have to take a stand sooner rather than later. Whether the Soviet revisionist leadership demanded Guevara’s removal from his posts in the economy of the island, as a pre-requisite to sustained economic aid, or whether his detractors in Cuba played a leading role in the events that followed the economic discussions, remains a matter of speculation. Regardless, it is clear to us that Guevara engages in an important theoretical debate till the very end and was never curbed by the overwhelming wave of criticism triggered by his writings, which he faced almost alone. In addition, we can only imagine how upsetting to pro-Soviet and Trotskyite elements in the island it would be to accept that the leading economist, a holder of a key command position in the Cuban economy, dares, not once, not twice, but at least three times that we are aware of, to cite and defend Stalin’s works as an authoritative reference against his opponents.

Che openly and in print criticises the revisionist manual of political economy published in the Soviet Union in the early sixties, with regards to the insistence of the Soviet revisionists on developing commodity-money relations in socialism, let alone the transition to socialism. After a series of gradual changes operated in the economic literature of the 1950s followed by crucial economic discussions held towards the end of that decade, the Soviet economists published a new manual of political economy under the editorship of a leading economist, Ostrovitianov. In this important document all the products in socialism are proclaimed to be commodities, including the means of production (with the utterly inconsistent exemption of labour force), and the law of value, which is used in a conscious way by the socialist plan, operates as the regulator of proportions of labour among enterprises, whether state owned or cooperatives.

As opposed to Stalin’s plans for the gradual shrinkage of the sphere of operation of the commodity-money relations and categories, the Soviet revisionists envisioned a plan to further enhance the role of these in the economy and to provide the enterprises with more independence. The operation of the law of value will disappear only when the highest stage of communism is accomplished in a more or less distant future. Guevara rebels against the new theses advocated by the Soviet revisionist economists by rejecting altogether the plans for developing commodity-money relations in socialism, which are treated by us as a departure from the political economy of socialism developed by Lenin and Stalin:

‘Why develop? We understand that the capitalist categories are retained for a time and that the length of this period cannot be predetermined, but the characteristics of the period of transition are those of a society that is throwing off its old bonds in order to move quickly into the new stage.

The tendency should be, in our opinion, to eliminate as fast as possible the old categories, including the market, and, therefore, material interest – or better, to eliminate the conditions of their existence’ (Che Guevara, in Man and Socialism in Cuba, Atheneum, New York, 1973, p. 142).

It is unfortunate, however, that Che’s reasoning is plagued with idealist assertions, according to which commodity-money relations allegedly embody within themselves the ideological burden of the capitalist society. As will be touched upon the next section, Guevara equates to a great extent commodity-money relations and categories with the concept of material incentive, which he understands as a mechanism aimed at motivating and enhancing labour productivity by the same means as used in capitalism. Material incentive and consciousness appear in Guevara’s thought as two poles of one of the main (if not the most relevant) contradiction in the process of socialist construction.

Guevara should not be accused of a left-wing attitude with regard to the role of commodity-money relations in socialism. Nowhere in Che’s writings can one find appeals to implement the policies of war communism in the Cuban economy. Much to the contrary, he is aware of the need to retain commodity-money relations for an undetermined period, as a result of the presence of a large mass of individual producers. Despite glaring idealist elements in Guevara’s thought we need to give him credit for identifying correctly the sphere of application of commodity-money relations and the fundamental reasons leading to the inevitability of the latter in the socialist transition in general and in the Cuban revolutionary process, in particular. In summarising the increasing contradictions between the line of thought and the economic reforms accomplished under his office, and the push for market relations advocated by the ‘marketists’ in Cuba Guevara states:

‘We deny the possibility of consciously using the law of value, in the conditions that a free market does not exist, which expresses directly the contradiction between producers and consumers; we deny the existence of the commodity category in the relation among state enterprises and we regard them as part of one big enterprise, the State (although in practice it does not happen yet in our country).’ (Che Guevara, op. cit. in ‘On the Budgetary System’, p. 96. Translated from Spanish.)

When Guevara admits to the fact that the state sector in Cuba does not function as a ‘one big enterprise’ he is most likely referring to the coexistence of the Ministry of Industry, the INRA and the Ministry of Foreign Trade, the latter two lead by Carlos Rafael Rodriguez and Alberto Mora, respectively, both rabid ‘market-socialists’. The latter had expressed their disagreement with Guevara’s plans for industrialisation of the island based on the argumentation that Cuba was not prepared for forms of economic relations consistent with developed stages of socialisation of the labour process. Rodriguez states as late as in 1988:

‘The budgetary system is closer to the future society… this system requires conditions that we will not be able to achieve in a long time’ (Carlos Rafael Rodriguez in Che Guevara, Cuba y el camino al socialismo, New International, New York, 2000, p. 42. Translated from Spanish.)

By arguing that Cuba was never (not even after 30 years of revolution) ready for higher forms of exchange between state enterprises, Rodriguez openly polemicises in 1988, as he used to do 25 years before, with Che’s assertion that products exchanged between state enterprises do not adopt the form of commodities.

Guevara to the very end sticks to his conception that the commodity-money relations are not inherent to the socialist economy, and especially to the socialised sector, which he tried so hard to build up since the very early stages of the Cuban revolution. Market relations come about as a result of the presence of important remnants of private producers and they are bound to disappear with them (both in form and content). Even though, Guevara refrains (to the best of our rather sketchy and fragmental knowledge of the evolution of Guevara’s thinking) from referring openly to his opinion with regards to the plans of collectivising the private producer, we believe that he would have advocated for a ‘Soviet-style’ type of bond between the socialised sector and the collective farms. As an advocate of retaining the main means of production outside the operation of commodity-money relations (i.e. means of production are not treated as commodities in content, regardless of the need to use value categories to assess the amount of labour involved in them), it seems natural that Guevara would have envisioned a concept pretty much like the machine tractor stations, as a main factor for the increase of labour productivity. We believe this statement is substantiated since the rational core of Guevara’s economic thought, despite strong elements of idealism and mechanicism, remains very close to the economic forms adopted in the Soviet Union under Stalin, which had become standard and were successfully applied with whatever modifications in the countries of People’s Democracies in Eastern Europe between the end of the 1940s and Stalin’s death. We have every reason to believe that Guevara was to a certain extent acquainted with Stalin’s Economic Problems and the basic differences of principle between the so-called Stalin model and the model of ‘market-socialism’ advocated by Rodriguez, Mora et al. in Cuba.

In probably his last article ‘Man and Socialism in Cuba’ a letter addressed to Carlos Quijano, editor-publisher of the Uruguayan weekly Marcha, written in early 1965, Guevara reiterates his position once more, leaving us no doubt that he stood for his principles till the very end.

‘Pursuing the chimera of achieving socialism with the aid of blunted weapons left to us by capitalism (the commodity as the economic cell, profitability, and individual material interests as levers, etc.) it is possible to come to a blind alley’ (Che Guevara, in Man and Socialism in Cuba,Atheneum, New York, 1973, p. 342).

Unfortunately, Guevara does not give up certain elements of idealism that make his economic thought so distinct as well as vulnerable and inconsistent. This side of Guevara’s economic thought has been publicised the most both in Cuba by his detractors and outside Cuba by Trotskyism and neo-Trotskyism. The clear connection between a significant number of Guevara’s statements on political economy and the so-called ‘Stalinist’ model of socialist construction is very much silenced. Che’s writing are twisted by picturing his economic thought as a continuation of his idealist and voluntarist stand in questions regarding the interrelation between the masses, the party and the guerrilla warfare, for which he is most commonly known.

On Guevara’s Alleged Trotskyism

Guevara soon entered into conflict with the Soviet revisionist leadership. As we have seen above, Che acknowledges differences of principle, as early as 1961, between the economic model established in what he used to call socialist countries, and the plans for industrialisation he was advocating. Guevara’s economic reforms were bound to clash with the character of the agrarian reform and the plans suggested by the Soviet Union that Cuba was to remain primarily a sugar cane producer for longer than anticipated by Che. As the character of the Cuban revolution consolidated and the Cuban leadership accommodated to the economic relations between the island and the Soviet Union, it was necessary that Cuban economists align with the new political economy created by the revisionists.

Guevara’s plans soon met glaring resistance within Cuba. Due to the worsening of Guevara’s relations with the Soviet leadership, many in Cuba felt a great deal of embarrassment. According to several of Guevara’s biographers, the Soviets accused Che’s economic views of Trotskyism. It was just a matter of time before Che is to leave his post of Minister of Industry and that his plans for industrialisation of the island are to be revised in favour development based on the sugar cane industry.

Trotsky is usually portrayed as a ‘radical left-wing’, as an advocate of extreme measures with regard to resolution of contradictions both in politics and economics. Trotsky’s alleged push for the militarisation of the economy has led many to believe that Trotskyite economic theories are opposed to the politics of the New Economic Policy (NEP) with regard not only to the relations between the individual producer and the state sector but also with regard to the liberalisation of the state sector. In this section we will try to substantiate the fact, that Trotsky’s economic theory cannot be classified as left-wing; much to the contrary, it does not deviate significantly from the right-wing revisionism in questions of socialist construction and the role of commodity-money relations during that period.

The myth about Trotsky’s alleged leftist stand in resolving contradictions in the transitional period, conceals the true essence of Trotskyism in economic questions. Guevara’s economic thought has nothing to with Trotsky’s attitude to commodity-money relations and categories in the transitional period; their views are completely opposed to each other. Such allegations with regards to Guevara’s economic thought are unfounded and preposterous, to say the very least. As covered above, Guevara’s economic thought does suffer from serious elements of mechanicism, which does not make him a Trotskyite, as such mistakes were common to many economists in the Soviet Union during the Stalin period.

It is very interesting to observe how the Russian bourgeoisie is willing to appreciate in Trotsky the ‘virtues’ of a ‘market-socialist’, which many in the left movement do not seem to be able to grasp. To commemorate the 125th anniversary of Trotsky’s birth, a leading economic journal, Voprosi ekonomiki (‘Questions of Economy’) published an article under the title ‘Economic views of L.D. Trotsky’. In this article the authors attribute Trotsky’s heavy-handedness during the revolution and the civil war to the historical circumstances of that time, that in fact Trotsky had become one of the first to push for the liquidation of the policies of war communism and the liberalisation of the economy by allowing several forms of property to coexist for an indefinite period of time. The authors draw the bourgeois reader’s attention to Trotsky’s true and poorly publicised merit as being one of the first to advocate a mixed economic model for the transition to socialism:

‘The transition to NEP significantly changed Trotsky’s economic views. In a number of his works during that time he agitates in favour of the development of market relations, material stimulation, the understanding of the plan, as rigorous management in the sense of foreseeing and synchronising various sectors of social production. During the period of NEP Trotsky formulated a number of very important, even original ideas, namely: about the incompatibility of the methods of war communism in the conditions of NEP, about the need for each enterprise to have its own accounting balance, about the objective limitations to transferring resources from the agrarian sector to industry…’ (M. Voeikov and S. Dzarasov, ‘Economic Views of L.D. Trotsky’ in Voprosi Ekonomiki No. 11, 2004, p. 152).

Trotskyite economic doctrine seriously overlaps with Bogdanovism/Bukharinism in the understanding of the essence of the plan. Trotsky, in his renowned work ‘The Soviet Economy in Danger’, written in late 1932, starts off by equating one of the economic laws of the socialist economy and the transition to socialism, the planning principle with preconceived harmony of economic proportions:

‘However, light-minded assertions to the effect that the USSR has already entered into socialism are criminal. The achievements are great. But there still remains a very long and arduous road to actual victory over economic anarchy, to the surmounting of disproportions, to the guarantee of the harmonious character of economic life.’ (The Soviet Economy in Danger, in ’Writings of Leon Trotsky 1932’, Pathfinder Press, New York, 1973, p. 260. Our emphasis.)

The famous and infamous principle of equilibrium and harmony of the proportions of labour in the socialist economy is advocated by Trotsky in a rather unambiguous way. Within the eclectic framework of Trotskyism, centralisation of the economic policy alters the abstract principle of harmony of the economic processes. Trotsky, in his attempt to oppose the transition of the Soviet economy towards higher forms of economic organisation, comes around as a full-fledged right-wing revisionist, adding no more substance to the right wing opposition led by Bukharin/Rykov.

‘It is impossible to create a priori a complete system of economic harmony. The planning hypothesis could not but include old disproportions and the inevitability of the development of new ones. Centralized management implies not only great advantages but also the danger of centralizing mistakes, that is, of elevating them to an excessively high degree. Only continuous regulation of the plan in the process of its fulfillment, its reconstruction in part and as a whole, can guarantee its economic effectiveness’ (loc. cit.).

Trotsky’s ‘continuous regulation’ is the back door to substantiating his rebuff of the party’s line to shrink the operation of the commodity-money relations in the economy, which leads to the liquidation of capitalist exploitation in the country and the consolidation of the socialist economic laws. Once opponents, Bukharin and Trotsky converged into Bogdanovism as the construction of socialism progressed in the Soviet Union.

When Trotsky appeals to the impossibility ‘to create a priori a complete system of economic harmony’ it is implied that the central economic organs, are not in a position to undertake the tasks of centralised economic management, regardless of the development of the forces of production and the socialisation of the means of production. Deformations of the socialist economy inevitably take place as centralised decision-making overpowers workers’ democracy and a caste of administrators takes over as a ‘communist bureaucracy’. Once more, the objective character of the economic laws in general and the economic laws of socialism in particular, is overruled and loses its raison d’etre in the economic thinking of right-wing revisionism. Instead, Trotsky, as a poorly concealed right-wing revisionist, appeals on and on to the need for establishing harmony between the different branches of the socialist economy, which lies at the basis of his political economy.

Trotsky’s Bogdanovism is not a phenomenon of the 1930s; much to the contrary, it is inherent to his economic thinking from the very early stages of economic reforms in Soviet Russia. In summarising the developments in Soviet Russia since the victory of the October revolution, Trotsky states that the period of war communism had to end in order to restore equilibrium in labour exchange between the peasantry and the working class and between branches of the state sector, as:

‘Every economy can exist and grow only provided certain proportionality exists between its various sectors. Different branches of industry enter into specific quantitative and qualitative relations with one another. There must be a certain proportion between those branches which produce consumer goods and those which produce the means of production. Proper proportions must likewise be preserved within each of these branches. In other words, the material means and living labor power of a nation and of all mankind must be apportioned in accordance with a certain correlation of agriculture and industry and of the various branches of industry so as to enable mankind to exist and progress.’ (L.D. Trotsky, ‘The First Five Years of the Communist International’, Volume 2, New Park Publications, London, 1953, pp. 228.)

The postulate about proportionality of portions of labour among branches of the economy was conceived as a general, non-historic law that would apply to all economic systems. Marx’s considerations about the need for the establishment of certain proportions in which labour is exchanged in every economic system, and revised in a mechanical fashion by Bogdanov/Bukharin had a simple consequence in practice: the application of the law of value as a regulator of production was to be perpetuated in the socialist economy under the abstract consideration about the need for proportionality. This abstract concept is shared by Bukharin and Trotsky:

‘The problem of the proportionality of the elements of production and the branches of the economy constitutes the very heart of socialist economy’. (The Soviet Economy in Danger, p. 265.)

The ultimate goal of right-wing revisionism in questions concerning the transition to socialism is to provide every possible ideological means to perpetuate the economic relations of capitalism and to undermine the process of socialisation of the relations of production. In doing so, right-wing revisionism creates eclectic forms, Trojan horses in political economy. The postulate about the need of proportionality proved a euphemistic attack against the party line to curtail the operation of the law of value in the socialist sector and capitalist exploitation in the Soviet economy. By appealing to an abstract concept of proportionality without, leaving its concretisation as a loose end in the economic thinking, naturally leads to the perpetuation of relations of production existing hitherto. Abstract formulations in general, and in political economy in particular, without a concretisation within the concrete-historical framework inevitably render hollow abstractions, double-edged swords in the hands of revisionism.

Certainly, Trotsky casts out his disguise of a left-wing revisionist by bluntly stating:

‘The innumerable living participants in the economy, state and private, collective and individual, must serve notice of their needs and of their relative strength not only through the statistical determinations of plan commissions but by the direct pressure of supply and demand. The plan is checked and, to a considerable degree, realized through the market.’ (The Soviet Economy in Danger, p. 275. Our emphasis.)

Here, Trotsky makes an open appeal to the implementation of market relations as the ‘judge’ of the correctness or effectiveness of the economic policies developed by the plan makers. In other words, in the transitional economy the market is the beginning and the end of the economic system, the medium in which the struggle between the planned and market principles evolves into higher forms of development. It is within the market and according to the rules of the market that the superiority of the socialisation of the means of production is supposed to be put to the test. At some point in time the capitalist and petty bourgeois forms of productions will collapse under the inevitable overwhelming economic pressure of the socialised sector, at the time when it is able to develop higher forms of labour productivity. Trotsky, as a vulgar right-wing economist, therefore stands against what had been usually referred to by them as extra-economic measures to suppress the market principle in the economy, advocating instead a gradualist approach to the resolution of the contradictions between the socialist and other economic forms.

Trotsky’s economic thought is plagued with metaphysics; the metaphysical division of the economic system of the transitional society into the planned system and the market system holds a prominent place in the economic works of Trotskyism. This anti-dialectical approach to the economic processes had been already exposed in the mid 1920s in the Soviet Union by the majority of the party, including Bukharin/Rykov. But despite these differences, the left-wing and right-wing opposition agreed on the main proposition: let the market be the regulator of the labour exchange not only between industry and the countryside, but within the economic subjects of the socialist sector.

The idealist, metaphysical and non-historic postulate of proportionality of the elements of production is at the basis of the right-wing theories of Trotsky/Bukharin and gives them a certain semblance of self-consistency. The market represents the realm where the law of value, which is the concretisation of the postulate of proportionality, regulates the flow of labour among economic subjects, whether socialised or not. Needless to say, Trotsky is not the first to concretise the postulate of proportionality, which he had recently embraced, nor he was the first to establish such a line of thought. The appeal to preserve the commodity-money relations in the form that existed during NEP clearly predates Trotsky’s assertions about the need for proportionality. While we have to give credit to Bogdanov/Bukharin for their pioneering work in the descending line of modern revisionism, Trotsky does not deserve such an honour, as his contribution does not go beyond popularising the vulgar political economy of right-wing revisionism.

Apart from the metaphysical as well as mechanical idiosyncrasy of Trotskyite thought, which does not deserve to be the main topic of the present discussion, it is useful to bring out quotations like the following:

‘In this connection three systems must be subjected to a brief analysis: (1) special state departments, that is, the hierarchical system of plan commissions, in the center and locally; (2) trade, as a system of market regulation; (3) Soviet democracy, as a system for the living regulation by the masses of the structure of the economy.(The Soviet Economy in Danger, p. 273. Our emphasis.)

Far from sticking to left-wing orthodoxy, Trotsky sounds more like a Yugoslav Titoite, more like a pro-Western market liberal than anything else.

Trotsky takes a right-wing stand with regard to the role of NEP in the transition to socialism. Despite earlier attacks on the party to strengthen and develop further the economic and political link between the working class and the peasantry, Trotsky turns into a fervent advocate of the early forms of the transition to socialism adopted by the party. Moreover, he accuses the latter of liquidating the union between the working class and the peasantry. As a vulgar ‘market-socialist’, Trotsky considers the NEP as an inevitable step due to the significant weight of petty private production in the countryside, regardless of the concrete-historical conditions of revolutionary Russia:

‘The need to introduce the NEP, to restore market relationships, was determined first of all by the existence of 25 million independent peasant proprietors. This does not mean, however, that collectivization even in its first stage leads to the liquidation of the market.’ (The Soviet Economy in Danger, p. 275.)

The need for a transition to market relations between industry and the peasantry holds absolute character. According to Trotsky, due to the backwardness of the Russian peasantry and the level of mechanisation of labour in the countryside, the only possible form of peasant production with other producers is inevitably commodity-money relations. Trotsky’s mechanical and metaphysical thinking does not conceive of the socialist state and the individual peasant engaging in other forms of exchange, as well. Trotsky views the process of collectivisation as a forced administrative measure to unnaturally suppress the commodity-money bond between the city and the countryside. It is only through the evolution of the market, that certain conditions are created that the peasant feels it is more profitable to produce as a member of a larger production unit rather than remaining an individual producer. Hence it is believed that collectivisation should be performed by the forces of the market, that the market will suppress itself in a natural way.

Trotsky’s inevitability of market relations as the dominating bond between production agents during the transition to socialism does not reduce only to the interrelations between industry and the peasantry, much to the contrary:

‘This policy [NEP, our note] is a necessary stage in the growth of state-owned industry. Between capitalism, under which the means of production are owned by private individuals and all economic relations are regulated by the market – I say, between capitalism and complete socialism, with its socially planned economy, there are a number of transitional stages; and the NEP is essentially one of these stages’ (L.D. Trotsky, ‘The First Five Years of the Communist International’, Volume 2, New Park Publications, London, 1953, pp. 233).

NEP involved far more than the realisation of peasant production in a free market and the establishment of economic ties between the countryside and industry based on supply-demand. Never mind the cohabitation of the socialist sector with state capitalism and petty capitalist exploitation in both the countryside and the city; NEP introduced broad pro-market reforms within the socialist sector based on commercial accounting. It is true, however, that the expansion of commodity-money relations was seriously curtailed in the socialist sector in the second half of the twenties, which Trotsky viewed as a bureaucratic-administrative attack on the principles upon which Lenin allegedly conceived the path to socialist construction. It is here, where Guevara rebels against right-wing revisionism by advocating the right of the socialist state to determine the character of the relations of production and to regulate the proportions of labour exchange between branches of the state sector according to the global needs of the socialist state rather than the profitability of individual enterprises.

Much against Guevara’s views, Trotsky during the very early stages of NEP, during the transition from ‘war communism’ advocated the de-centralisation of the state sector:

‘The policy of a centralized bureaucratic management of industry excluded the possibility of a genuine centralized management, of fully utilizing technical equipment along with the available labor force.’ (L.D. Trotsky, ‘The First Five Years of the Communist International’, Volume 2, New Park Publications, London, 1953, pp. 230.)

As a result of the efforts to de-centralise state industry in 1921, especially light industry, as advocated by Trotsky, negative effects were felt soon, such as:

‘…violation of plan discipline, separatism; some state officials tried to replace the state plan organisation – VSNKh – by some ‘social organization of industry’’ (P.I. Lyashchenko, History of the People’s Economy of the USSR, Moscow 1956, Volume III, p. 153. Translated from Russian.)

Guevara supported the correct view that economic calculation does not necessarily imply market relations as factors determining production in the state sector, that economic accounting is not necessarily tied to commodity-money relations, as advocated by the supporters of the Soviet-style model in Cuba. Trotsky takes sides with Soviet revisionism:

After the administrative suppression of the NEP, the celebrated ‘six conditions of Stalin’ – economic accounting, piecework wages, etc. – became transformed into an empty collection of words. Economic accounting is unthinkable without market relations.” (The Soviet Economy in Danger,p. 276. Our emphasis.)

The history of the political economy of socialism has exposed the intimate link between the postulate of proportionality in the exchange of labour among different branches of the economy and the mechanical transportation of market relations to socialism. Metaphysics and mechanicism, common to the economic thought of right-wing revisionism, are closely interrelated with vulgar and superficial understanding of economic categories, which impels the ideologists of right-wing revisionism to equate exchange to commodity exchange and economic equilibrium to the operation of the law of value. The vulgar economic thought advocated by Trotsky and the right-wing opposition does not conceive another form of economic exchange other than commodity-money relations. It is not conceivable that the socialist state could establish a different content in the economic ties among objects of the socialist economy, which may violate the rigid principle of profitability of the individual enterprise. The ability of the planning bodies to establish labour exchange among socialist enterprises, which violates that principle, is viewed as a deformation, as a disproportion. Right-wing revisionism is unable to grasp and appreciate the great power in the hands of socialist planning to establish certain proportions of labour exchange that fit the needs and growth perspectives of the socialist economy, regardless of the overall level of socialisation of economy. In this sense, right-wing economists conceive the plan as a corollary of subjective (aprioristic, according to Trotsky) measures to organise, rationalise the labour exchange among profit-making individual enterprises. Guevara wholeheartedly rejects such a vulgar view of the plan, by advocating the right of the socialist planning to establish a different character of economic relations among the state enterprises, which does not necessarily follow the principle of profitability of the individual enterprise as the leading criterion for economic effectiveness.

Guevara openly exposed the view advocated by Trotsky and the ideologists of modern revisionism that economic accounting ‘is unthinkable’ without commodity money relations. Much to the contrary, Che advocated strict accounting, based on centralised responsibility and accountability of the management of the socialist enterprise, as a key element of the budgetary finance system, which lies at the centre of this economic thought. In his economic system economic accounting in the socialist sector is dissociated from the essence carried by commodity-money relations. Even though Guevara does not seem to grasp the dialectical evolution of market categories in socialism, his thought contains the basic elements to arrive at this understanding. Guevara’s accepts the correct view that the price, despite being a category inherited from the market economy, may be used within the socialist sector for calculation purposes. Hence, he does not reject the use of the form of market categories, which brings him closer to the Marxist-Leninist understanding developed by Lenin-Stalin. On the other hand, it is not clear to us that Guevara understood the evolution of the principle of economic accounting, which was introduced in 1921, through the NEP all the way to the massive collectivisation and the consolidation of the economic basis of socialism in the 1930s, all the way to the publication of Stalin’s Economic Problems. An analysis of the category of economic accounting shows that a deep change in the content had taken place which, despite the fact that the term was in use in the 1930-50s, reflected a different type of management to which Guevara’s budgetary system bears strong resemblance.

According to Tablada and Borrego, Che Guevara paid special attention to the analysis of the causes which led to the abolition of the war economy and the establishment of NEP. This issue is covered on multiple occasions in their books and has been the topic of a great deal of speculation, including allegations that Guevara accused Lenin of going too far in the development of market relations during the early stages of the NEP. Regardless of speculations, Che makes a strong case out of Lenin’s statements, in which NEP is considered as a retreat in the practice of the revolutionary process like the peace of Brest-Litovsk. It is evident, despite the wealth of confusion fostered by Guevara’s bourgeois, Trotskyite and neo-Trotskyite biographers, that Guevara does not consider NEP as an inevitable step in the transition to socialism, as a general and universal statement, but rather, a product of the historical-concrete conditions of revolutionary Russia. After quoting Marx, Lenin and Stalin (this article was written in 1964, when anti-Stalinism was already solidly established in the Soviet Union and the former People’s Democracies in Eastern Europe, with the exception of Albania), Guevara concludes:

‘As we see, the retreat that Lenin mentioned was due to the economic and political situation of the Soviet Union. These policies may be characterised as a practice, which is closely linked to the historical situation of the country, and, therefore, they do not hold universal character.’ (Che Guevara, ‘Che y la Economia’, Editorial de Ciencias Sociales, Habana, Cuba 1993, p. 74. Translated from Spanish.)

The argumentation in favour of NEP-type of economic reforms as an unavoidable step in the transition process between capitalism and socialism is a fundamental element of the economic theory of right-wing revisionism, including Trotskyism, which Guevara rejected altogether. A historical example, which refutes NEP as a compulsory stage for new revolutionary states, is served by the first steps adopted by the People’s Democracies in Eastern Europe between 1948 and 1953. The governments of the People’s Democracies set an economic course based on the priority of heavy industry over other sectors of the economy. The policies of what bourgeois ideologists called the Stalinist economic model resulted in a spectacular growth of the socialist industry, a conditio sine qua non for a massive process of socialisation of means of production both in the city and the countryside. Even a vicious anti-communist publicist, such as F. Fejto, a Hungarian-born journalist based for a long time in France, admits:

‘Between 1949 and 1953, the industrial production of the six Comecon countries rose by 114 per cent, and in certain countries, like Hungary, where the ambitious planners knew no limits the results had been even more spectacular. Heavy industrial production increased fivefold; the engineering industry was seven times more productive in 1953 than in 1938. (F. Fejto, A History of the People’s Democracies, Penguin Books, 1977, p. 362.)

Further, Fejto elaborates on the very interesting case of the transition to socialism in Hungary, especially the events that followed the abrupt change of ‘gears’ imposed by the Soviet leadership weeks after the death of Stalin. In 1949 Hungary’s party, led by Matyas Rakosi, one of the most fervent supporters of Stalin’s policies, launched a campaign of collectivisation, which, although far from finalised, was well underway towards 1953. With Stalin’s death a swift change in the character of the Soviet leadership took place. The new Soviet leadership, at first initiated most likely by Beria, imposed on the leaders of the fraternal parties in Eastern Europe a line of forcible de-Stalinisation. The revisionist leadership ordered Eastern European leaders to slow down the tempo of industrialisation and to basically liquidate the process of ‘forcible’ collectivisation. In a number of countries, peasants were allowed to desert the collective farms (‘de-collectivisation’) if they wished to; private exploitation of land together with the restoration of the artisan class and private business. It was argued that the ‘Stalinist’ economic reforms had gone too far, that allegedly broad masses of the peasantry and the working class in those countries were frustrated at seeing that the unquestionable economic growth did not result in meaningful enhancement of the standards of living of the population, including that of the working class. There is no question that the ideological and organisational chaos induced by the policies of forcible ‘de-Stalinisation’ encouraged anti-communist elements within the middle classes, petty bourgeoisie and workers aristocracy to demonstrate compulsively, while entire party organisations proved hopeless, in disarray.

The Hungarian leader, Matyas Rakosi, did his best to stand up against Soviet revisionism and its supporters in the country; he succeeded in remaining in office till July 1956, when he was basically forced into exile by the Soviet leadership. Following orders from the Soviet revisionist leadership, in July 1953 Rakosi was forced to give up the post of Prime Minister, which passed to Imre Nagy, who even in the words of Fejto:

‘…revived Bukharinist ideas that had gone underground in Stalin’s lifetime’ (F. Fejto, A History of the People’s Democracies, Penguin Books, 1977, p. 363).

Certainly, Nagy was a fervent advocate of NEP-style treatment of the economic contradictions between the socialist sector, the peasantry and other petty producers. Soon after he gains office in July 1953, he launches a set of ‘liberalising’ measures, which became known as the ‘New Course’. In his last work, written in 1955, he states:

‘In a socialist society, when determining the tempo of economic development and the ratio between the various economic branches, the proportion between production and consumption and between consumption and stockpiling must be in harmony with the requirements of the basic economic law of socialism, guaranteeing a gradual advance of society’ (I. Nagy, ‘On Communism’, Frederick A. Praeger Publishers, New York, 1957, p. 98).

Nagy advocated ad nauseam the need for harmonic balance between the resources spent on sector A and sector B of the economy. The well-known concept of certain harmonic proportions invented by Bogdanov/Bukharin and plagiarised by Trotsky comes out again and again, as the back door to the development of commodity-money relations both in the socialist and non-socialist sectors, as a regulator of production. It is interesting, that unlike Bukharin/Trotsky, he uses Stalin’s citations of the mid twenties to substantiate the need to have NEP-style relations in the transitional economic system. In fact, by ‘basic economic law of socialism’ Nagy implies the well-known formulation given by Stalin in Economic Problems. This, however, does not prevent Nagy from remaining a vulgar right-wing economist, which Guevara’s economic thought has nothing to do with.

According to Nagy, the only bond that the socialist sector and the private producer can have in the early stages of the transition from capitalism to socialism is the market. It is only through the market that the process of socialisation of production can prove its advantages over capitalist forms of management and production. Nagy is explicit:

‘‘The NEP policy must be carried out unconditionally, as it means the establishment of increasingly closer relations in the exchange of goods between the city and the village, between the socialist industry and the system of small holdings producing for the market, facilitating the switch to a socialist system of agricultural farms on a large scale.’ (I. Nagy, op. cit., p. 82. Our emphasis.)

Nagy on and on bitterly complains about the staggering disproportions and ‘distortions’ inflicted on the Hungarian economy by Rakosi’s ‘clique’, referring to the fast development of heavy industry with respect to light industry, and especially the countryside. Nagy’s attack on Rakosi’s ‘clique’ becomes even more acute when touching upon the treatment of individual peasants and the collectivisation. He initially refers to Rakosi’s ‘clique’ as adventurous, later on as open left-wing ‘fanatics’ and deviationists. Finally, while quoting Lenin and Stalin’s works in the 1920s, taking their writings out of context, Nagy establishes a parallel between Rakosi’s struggle to uphold the principles of Marxism-Leninism, regardless of whatever mistakes in its implementation, and the Trotskyite left-wing opposition in the Soviet Union in the 1920s by appealing to:

‘The resolutions of the Bolshevik Party in the Fifteenth Congress, which were forged in the battle against the extreme ‘left-wing’ Trotskyist opposition…’ (I. Nagy, op. cit., p. 82.)

It is not the first time that right-wing opportunism portrays the struggle for the basic principle of centralisation of means of production in the construction of socialism as a left-wing, Trotskyite deviation. These allegations of Trotskyism that were thrown at Guevara are to be understood in the historical context, which corresponds to the time when right-wing revisionism, led by the revisionist leadership of in the Soviet Union, disbanded the ‘Stalinist’ plans for the socialisation of the means of production in industry and the countryside. Modern revisionism turned the state sector in the People’s Democracies into an aggregation of independently producing enterprises, which engage in labour exchange with other enterprises and the state via commodity-money relations; in the countryside the process of collectivisation was halted and reversed, and in some countries farm cooperatives were turned into independently producing enterprises, following the model imposed by the revisionists in the Soviet Union. It is in this context, that Guevara’s fight against followers of the Soviet economic model in Cuba, despite his mechanical and idealist mistakes, renders a substantiated critique against right-wing revisionist theories for the construction of socialism.

Guevara’s plans for the industrialisation of the Caribbean island need to be understood within the historical-concrete situation corresponding to the restoration of capitalism in the Soviet Union and the People’s Democracies in Eastern Europe. Despite elements of idealism and mechanicism, Guevara’s model of budgetary finance system and his refusal to implement commodity-money relations and the law of value as the regulator of proportions among state enterprises bears strong resemblances with the economic system existent in the Soviet Union during the 1930-50s. Hence, it was natural that Guevara’s plans for industrialisation faced fierce resistance by Soviet revisionism and its followers in the island. It is evident to us, that allegations of Trotskyism or left-wing deviationism thrown by right-wing revisionists are utterly unfounded. Nevertheless, more investigation is needed to throw light on Guevara’s ideological evolution in the 1950s and early 1960s and on how he came to propose the budgetary finance system, as the fundamental pillar for the industrialisation in Cuba.

Idealism and Mechanicism in Che’s Economic Thought

Despite the progressive character of Guevara’s economic thought, and its invaluable positive impact on the economic discussion held in Cuba during the first half of the 1960s, which represents a courageous and more or less consistent and substantiated struggle against modern revisionism, Che’s thinking needs to be considered critically. Notwithstanding the substantiated struggle against the right-wing theories of socialist construction, which makes Guevara’s works most relevant materials for the study of questions related to socialist transformation, he is plagued with serious mistakes. Guevara’s eclecticism is inherent to his thought in general, and cannot be neglected when evaluating Guevara’s role in the Cuban revolution and the theory of socialist transformation.

Guevara’s mistakes in political economy can be classified into two groups: idealism and mechanicism. Idealist mistakes were committed by Guevara when evaluating the role of consciousness in political economy. When we refer to mechanicism in Guevara’s economic thought we mainly imply his failure to grasp the dialectical evolution of economic categories involved in commodity-money relations during the transitional epoch. Needless to say, Guevara’s mistakes have been extensively used by the bourgeoisie and the representatives of revisionist tendencies, such as Trotskyism and neo-Trotskyism to mystify the revolutionary and rip his contribution to the political science and political economy from its Marxist logical core and divorce it from a number of Marxist-Leninist principles, which Guevara tried to uphold in a more or less consistent manner.

Guevara’s mistakes in political economy have been used inside and outside the island to consider Guevara’s contribution to the economic transformations in the early stages of the Cuban revolution in isolation from the principles of socialist transformation adopted by the People’s Democracies during the post-war period, so demonised by modern revisionism. Guevara’s thought is portrayed by many as a specific phenomenon of the Cuban revolution, thus completely ignoring its strong links with the so called ‘Stalinist’ economic theories and modus operandi during the transitional period. Although we do not wish to portray Guevara’s economic thought as a faithful concretisation of the principles of Marxism-Leninism in the conditions of revolutionary Cuba in the 1960s, we feel it would be a serious mistake not to evaluate Guevara’s thought within the concrete-historical epoch corresponding to systematic violation of the principles of Marxism-Leninism, which led to the restoration of capitalism in the Soviet Union and the liquidation of socialist construction in Eastern Europe. While evaluating critically Guevara’s economic thought and identifying areas of inconsistency, we feel compelled to appreciate and value the positive and progressive that Che upheld under very difficult conditions of struggle against imperialism and revisionism.

Idealism is present throughout Guevara’s works all the way till his last published work, ‘Man and Socialism in Cuba’. It leads Guevara to proclaim consciousness and education as primary with respect to the study of relations of production in the transitional economy, including the construction of communism. Impressed by the early philosophical works of young Marx, Guevara states:

‘The word conscious is emphasized because Marx considered it basic in stating the problem. He thought about man’s liberation and saw communism as the solution to the contradictions that brought alienation – but as a conscious act. That is to say, communism cannot be seen merely as the result of class contradictions in a highly developed society, contradiction that would be resolved during a transitional stage before reaching the crest. Man is a conscious actor in history. Without this consciousness, which embraces its awareness as a social being, there can be no communism.’ (Che Guevara, in ‘On the budgetary finance system’, published in Man and Socialism in Cuba, Atheneum, New York, 1973, p. 124. Our emphasis.)

The role of consciousness and education is ubiquitously stressed by Guevara in his economic works as the leading factor in the transition to higher forms of economic organisation. In Guevara’s system political economy ceases to be an independent discipline, the objective character of the economic laws of the transitional society is secondary to the cultural formation of the new man. The economic laws of socialism, like those of capitalism, exist and evolve with the development of the forces of production and the historical conditions at times independently from the level of consciousness of the masses. In fact, in certain historical situations, the masses as a whole remain unaware of the economic essence of both revolution and counter-revolution.

The role of consciousness and education undoubtedly play a fundamental role in the construction of the new society. However, political economy remains an independent discipline and the study of the objective laws that govern it remains a titanic effort. Only scientific analysis and synthesis of the relations of production can make possible the sustained economic development necessary for the construction of the socialist and communist societies. As opposed to capitalism, during the course of the transition to socialism, objective and subjective conditions are given for the masses to participate consciously in the construction and scientific analysis and synthesis of the socialist construction. It is clear that the more conscious and active participation of the working class in the socialist construction, the more solid are the foundations of the socialist formation. It is clear too, that the more conscious the working class is about the essence of the economic transformation, the more robust is the economic development and the less influential are the forces of counter-revolution.

Economic development under socialism and the development of consciousness and socialist culture – two phenomena which go hand in hand. Generalisation on the basis of the history of the Soviet Union indicates that consciousness and socialist culture require a material basis, without which further economic development and further development of consciousness. However, according to Guevara consciousness and socialist education are supposed to be the primary engines of economic development in socialism:

‘The hopes in our system [budgetary finance system – our note] point to the future, towards a more rapid development of consciousness, and through consciousness, to the development of the productive forces’. (Che Guevara, op. cit. in ‘Socialist plan: its meaning’, p. 147. Translated from Spanish.)

In Guevara’s system, socialist economic development is not really the engine of consciousness, but the other way around, consciousness is the source of socialist economic development. Guevara’s idealism turns voluntarist. In this respect, Che’s idealism may be compared to Mao’s idealist views in political economy, despite the fact that Guevara displays a significantly more progressive stand with respect to commodity-money relations than the latter. Mao, in his critique of Stalin’s Economic Problems, bitterly complains about the fact that the latter does not include the study of the superstructure in the analysis of the socialist economy:

Stalin’s book from first to last says nothing about the superstructure. It is not concerned with people; it considers things not people…

They speak only of the production relations, not the superstructure nor politics, nor the role of the people. Communism cannot be reached unless there is a communist movement’. (Mao Tsetung, A Critique of Soviet Economics, Monthly Review Press, New York and London, 1977, pp. 135-136.)

Guevara supports the wrong idealistic view that commodity-money relations per se and in general are a manifestation of the alienation of the human being in the process of production. Guevara interprets mechanistically and metaphysically the role and place of economic forms inherited from capitalism in the socialist economy:

‘The alienated human individual is bound to society as a whole by an invisible umbilical cord: the law of value. It acts upon all facets of his life, shaping his road and his destiny. (Che Guevara in ‘Man and Socialism in Cuba’, Atheneum, New York, 1973, p. 340.)

One of the major and profound mistakes displayed by Guevara’s economic thought, a mistake common to many others who have genuinely claimed allegiance to Marxism-Leninism, is his failing to grasp Lenin’s and Stalin’s teachings with regards to the dying off of economic categories inherited from capitalism. These teachings may be succinctly expressed in Stalin’s well-known assertion in Economic Problems. In his answer to A. Notkin, Stalin stresses:

‘The fact of the matter is that in our socialist conditions economic development proceeds not by way of upheavals, but by way of gradual changes, the old not simply being abolished out of hand, but changing its nature in adaptation to the new, and retaining only its form; while the new does not simply destroy the old, but infiltrates into it, changes its nature and its functions, without smashing its form, but utilizing it for the development of the new. This, in our economic circulation, is true not only of commodities, but also of money, as well as of banks, which, while they lose their old functions and acquire new ones, preserve their old form, which is utilized by the socialist system.’ (J.V. Stalin ‘Economic Problems of Socialism in the USSR’, Foreign Languages Publishing House, Moscow, 1952, p. 59.)

Guevara commits the colossal mistake, which has been more or less successfully exploited by neo-Trotskyism and other bourgeois ideologies, of mechanically and metaphysically extrapolating the character of the economic categories implemented during the NEP to later stages of the socialist construction in the Soviet Union. Guevara, de facto blames the adoption of such economic forms as economic accounting, profit, credit, etc. implemented in the 1920s for the right-wing deviationist economic theories that he was fighting in the 1960s, without appreciating the profound changes that operated in the content of those categories during the 1930-50s:

In the Soviet Union, the first country to build socialism, and those who followed its example, determined to develop a planning process that could measure broad economic results by financial means. Relations among enterprises were left in a state of more or less free play. This is the origin of what is now called economic calculus (a poor translation of the Russian term, that might better be expressed as auto-financing, or, more precisely, financial self-management).

Roughly speaking, then, financial self-management is based on establishing broad financial control over the enterprise activities, banks being the principal agencies of control. Suitably designed and regimented material incentives are used to promote independent initiative toward maximum utilization of productive capacity, which translates into greater benefits for the individual worker or the factory collective. Under this system, loans granted to socialist enterprises are repaid with interests in order to accelerate product turnover’. (Che Guevara, in ‘On Production Costs and the Budgetary System’, published in Man and Socialism in Cuba, Atheneum, New York, 1973, p. 114.)

It is clear that, the transition to socialism in the Soviet Union, which followed the implementation of market-type economic relations in most of the economy, had to carry within itself certain economic forms, which are inevitably inherited from capitalism. However, Guevara apparently fails to grasp the fact that the concept of economic accounting evolved dramatically over the years, as the character of the economic relations evolved. The concept of economic accounting never disappeared from the Soviet economic literature; however, its content evolved in time in order to accommodate the planned principle of the economy on the basis of socialised property and the liquidation of bourgeois and petty-bourgeois forms of production. The economic accounting of the more or less disseminated production subjects confined to the Soviet artels in the 1920s bears little resemblance with the economic accounting of highly concentrated Soviet industry in the 1930-50s. The character of the labour exchange among the different production subjects during the 1930-50s bear close resemblance to that of the budgetary finance system advocated by Guevara in the 1960s.

It is not clear to us, to what extent Guevara is able to appreciate the qualitative changes that operated in the interpretation of the content of economic categories over the history of the political economy of the Soviet Union. It is unclear whether Guevara sees the preservation in the Soviet Union of economic forms such us, economic accounting, profit, credit, banks, etc… as a sign of economic backwardness, or rather as a sign of the concrete historical conditions under which the transition to socialism took place in the Soviet Union. For instance, Guevara advocated the liquidation of the concept of credit in socialism, even though the form of credit was never liquidated in the Soviet Union:

‘In our system [the budgetary system – our note.] the Bank supplies a certain amount of resources to the enterprises according to the budget; here the interest rate is not present’. (Che Guevara, op. cit. in ‘Considerations on Expenses’, pp. 45-46. Translated from Spanish.)

The same applies to the economic category of profit, which was never liquidated in the Soviet Union but was categorically denied by Guevara within the context of the budgetary finance system in Cuba. Guevara seems to understand mechanically the economic relation of the State with socialised production subjects:

‘…because the State Enterprise in the conditions of Cuba, is just a centre for production. It has a budget, a budget for production; it should meet the goals of production and deliver its product to the Ministry of Domestic Commerce, or to other state industries. Thus, the enterprise does not have profit, does not have money; all the profit, all the difference between what was sold and the cost belongs to the Cuban state. The enterprise is reduced to production.’ (Che Guevara, Conference ‘Economy and Plan’ of the People’s University, 1961. Translated from Spanish.)

As a matter of fact, the history of the political economy of the Soviet Union has demonstrated that the principle of socialist planning on the basis of socialised forms of production does not contradict the implementation of such economic forms as profit, as long as the latter do not express the relationship between independent producers, but on the contrary is used as one of the indexes of economic effectiveness, etc… To state that profit is not the leading economic criterion in socialist industry is generally speaking correct. However to interpret the sole presence of the concept of profit, regardless of its relative weight in the definition of economic effectiveness, as a sign of economic backwardness is strictly speaking incorrect.

In his article ‘Bank, Credit and Socialism’ Guevara brilliantly exposes the vulgar and fetishist economic views of those in Cuba who did not understand the need to re-define the role of banks in a socialist economy and that the economic functions of the banks in capitalism cannot be mechanically transported to socialism. His conclusions are generally speaking correct, correct in the sense of abstract formulations. So are his conclusions with regard to commodity-money relations and the role of the law of value in the transitional economy. However, they are correct in the abstract and may turn dangerous if applied mechanically to concrete-historical conditions.

Unfortunately, the evaluation of Guevara’s economic thought is confusing and inconclusive since the budgetary finance system is conceived as a result of the struggle with right-wing economic theories, which absolutise the role of commodity-money relations. The budgetary finance system is without a doubt a reaction against right-wing economic theories and needs to be appreciated as such. Further investigations, possibly on the basis of archival materials, will hopefully throw valuable light on the role of mechanicism and metaphysics in Guevara’s economic thought.

Source

J.J. Lawrence: Che Guevara

CheLaCoubreMarch

I have been asked to write an article on Che, which I am pleased to do. Before I write this article, I must insist that if you have not read anything on Che (apart from this article) you must read a biography on him. Che was the first time I had read on something involving communism, which had a huge influence on me. There are a great deal of articles on Che. I do not want to just write another short summary of his life. I have tried in this article to show key points which had significant impact on him, and why he became the man he was.

‘Because of the circumstances in which I travelled, first as a student and later as a doctor, I came into close contact with poverty, hunger, and disease; with the inability to treat a child because of lack of money; with the stupefaction provoked by continual hunger and punishment, to the point that a father can accept the loss of a son as an unimportant accident… and I began to realize that there were things which were almost as important to me as becoming a famous scientist or making a significant contribution to medical science; I wanted to help those people.’ (Che Guevara, 1960, speaking on revolutionary medicine).

Ernesto ‘Che’ Guevara was a communist revolutionary, a social philosopher, a medical doctor and became an international figurehead for the communist cause. His dream was to change Latin America into a socialist utopia and end US imperialism there as well as helping the rest of the developing world free themselves of oppression. When I first read about Che, I was blown away, his life, his ideals, a tear came to my eye when I read about his final hour and his murder in Bolivia. From the moment he agreed to join Castro’s revolution, he dedicated his life to the communist cause , his determination was unbelievable. In my opinion there was a number of key points on how Che became the man he was and why he is such an icon to so many today.

(1)

The first “key point” in my view was his asthma. I know some people would not see this as hugely significant but to me it was. From such a young age it affected him terribly, he did not start school until the age of seven because of it. But his mother gave him a good basic grounding in education. The asthma was something to him that would not hold him back, it gave him so much resolve. It was the fact that he had asthma that gave him this determination to succeed and throughout his battles in Cuba, the Congo and Bolivia it affected him terribly. Surely it was physically demanding enough to be a guerrilla fighter and on top of that he had to cope with asthma, he became a severe and a ruthless disciplinarian to his troops who complained and showed physical weakness. He concluded that if he could manage with severe asthma that they should find it much less demanding than him. Overall it installed huge determination in him, his will to take part in physical activity, it would not stop him from being part of the team. One of his decisions to study medicine was his determination to find a cure for his side effects of his drugs he used for asthma. He eventually qualified as a doctor. He knew his asthma was a weakness, but it installed in him, a self determination that would last for the rest of his life.

(2)

His travels of Latin America, without doubt, had a profound impact on Che. He visited numerous countries throughout his travels, as the quote from Che says ‘Because of the circumstances in which I travelled, first as a student and later as a doctor’, he witnessed at first hand the social injustice, US imperialism, the devastating poverty of the downtrodden classes and the ethnic minorities. Just to think what may have become of Che, if he did not travel around Latin America? He visited nearly all of the Latin American countries. He saw what kind of life that some people had to endure, while people suffered in poverty, starving and treated like filth, somewhere down the road a US owned business rakes in the PROFITS while subjecting the workers to wage slavery. Che, in his travels, for example, came into contact with an old woman, who was asthmatic, with a heart condition. This woman couldn’t pay her way.

‘It is then, at the end, that we see the profound tragedy which circumscribes the life of the proletariat the world over. In these dying eyes there is a humble appeal for forgiveness and also, often, a desperate plea for solace which is lost in the void’

As each encounter with social injustice, poverty, US imperialism and disease, occurred, Che began to realize that the whole of Latin America was in desperate need of change. The whole system was corrupt. Che had throughout his travels, already read a great deal on Marx, Engels, Lenin and Stalin etc., then when he witnessed the devastating effect of capitalism and privately owned businesses (usually US) in Latin America, he knew his beliefs were right. To destroy the current system and once and for all bring social justice, an end to capitalism. To finish that quote with which Che showed his anger at the system:

‘How long this present order, based on absurd idea of caste, will last I can’t say, but it’s time governments spent less time publicizing their own virtues and more money – much more money – funding socially useful projects.’

He found himself in Guatemala, under a new government of Jacobo Arbenz, which nationalized land owned by United Fruit, plus various US multinationals who severely exploited the workers, while they accumulated the profits. Obviously the US were not going to allow their interest to be affected, just because Jacobo Arbenz wanted to give his people a better standard of living. It became clear that the CIA were planning to overthrow the new government, then install a puppet. Eventually the coup won, Che was outraged that the government failed to arm the people. He once again had witnessed US intervention. Che gained valuable experience from his Guatemalan experience, that there must be unity, and to arm the people, he also realized that Uncle Sam would have to be kept in the dark until the revolution was secure. He also met the woman that would become his wife, Hilda Gadea Acosta, she would introduce him to some members of the JULY 26 MOVEMENT. He arrived in Mexico knowing that he was prepared to join any type of revolution that was fighting to overthrow a dictator. This is where Che Guevara met a man who would change his life and the course of history.

(3)

In Mexico, he had heard a lot about the leader of the July 26 movement, now he would meet him. FIDEL CASTRO, this is without doubt, without question, Fidel Castro had the biggest impact on the life of Che Guevara. All of Che’s experiences, his childhood and his travels, he realized that social change was needed. Seeing the US imperialism around Latin America, the devastating poverty of the downtrodden classes, he realized that a revolution was the only way. He needed to find a cause? He needed to find a strong leader?

It had reached the climax for Che, he had found his leader for a revolution, in Che’s own words after meeting Fidel:

‘an extraordinary man. He confronted and solved the most impossible problems. He had an unshakeable faith that once he left exile in Mexico and arrived in Cuba he would fight, and would win that fighting. I shared his optimism. It was imperative to do something, to struggle, to achieve. It was imperative to stop crying and fight!’

For Che, to say something like that, so soon after meeting him, shows what impact Castro had on Che. He talked with Fidel in their first encounter on every conceivable subject, they were like long lost soul brothers.

In the various “key points” I have shown, I feel these were the fundamental factors in the making of Ernesto ‘Che’ Guevara. These various incidents in Che’s life had a huge impact on him, from him suffering asthma, his travels of Latin America and meeting Fidel Castro. They all helped create a man whose life was dedicated to people who suffered at the hands of injustice.

THE REVOLUTION AND BEYOND.

Throughout Cuban revolution, Che was to become a severe and ruthless disciplinarian. He once shot a man for falling asleep on guard duty and ordered executions of deserters etc. Some people have argued that he was too harsh and too severe. But in my opinion he was justified, he became so dedicated to the revolution that nothing on earth could jeopardize it. During the Cuban revolution, Che showed his bravery, his tactical skill, his determination and all this was noted by Castro who eventually promoted Che to commander. He showed that anything he applied himself to he could do, Che Guevara was quite simply, a rare bird. He was without question the best guerrilla fighter in the Cuban revolution, he showed, at times, a complete disregard for his own personal safety. Even when Castro had told him not to take part in some of the battles. He was always determined to lead by example. During the revolution he would meet the woman who would become his second wife, Aleida March. What was an important factor to me about Che Guevara, was educating the new rebels, he set up an education program during the revolution. He was determined to introduce them to Marxism Leninism, Castro didn’t want the communist element to be heard, of course if the Americans got wind of it the revolution might have been doomed. Castro, I believe was always going down the communist road, he just needed to keep it quiet from uncle Sam.

When the rebels had won, and marched into the cities of Havana etc. Che set about leading by example, he was determined to show the people that everyone must make sacrifices in the ‘new Cuba’. Like in all revolutions, traitors and former henchmen of General Batista were still in the air. Some highly publicized trials were held. Over 500 men were convicted for crimes against the people, Che was in charge of the trials and had the last say on the fate of the men. Some people were outraged, friends who knew Che before he joined the revolution were shocked. In my view it was absolutely justified, some of the men executed were guilty of horrendous crimes. Others were a threat to the revolution and deserved to die. It shows an interesting aspect in Che’s character, a man who always wanted to help the people and to bring social justice to the world, but he showed no mercy to the enemies and handed out death sentences to them unemotionally. What is so profound of Che was his dedication, just as he was as a fighter in the revolution. He was determined to see the ‘new Cuba’ have economical stability and make sure it survived. Che was entrusted with the crucial job of forging relations to bankroll the revolution by visiting the rest of the socialist states, such as the Soviet Union, China and various other countries. When he returned to Cuba, he had the great news of securing financial and political support of the two communist super-powers China and the Soviet Union. He worked immensely hard for the revolution, be it going round the world forging alliances with various nations or going to do volunteer labour work on a construction site in Cuba. Seldom do you see a politician doing that at present in England or anywhere. At times he worked 36 hours straight meeting various people to help the revolution. To me these examples of self sacrifice had a huge impact on me, to see a man work so hard, so honestly and all he wanted in return was not a big pay packet but for the rest of Cuba to follow suit. During the Cuban missile crisis, when without consulting Castro the Soviet leader Khrushchev had already done a deal with President Kennedy. Castro was furious, but kept a smile for Khrushchev. Che was furious, he never trusted nor did he ever like the Soviet leader.

It was Che who first denounced the new Soviet imperialism for not giving unconditional support to third world liberation movements etc. It was a part of Che’s character, he would always voice his opinion, whether it be attacking his nemesis, or criticizing the Soviet Union for its faults. History has proven Che correct about the former Soviet Union, with revisionists such as Khrushchev and the eventual collapse of it. Che saw this happening.

CONCLUSION.

Che Guevara had served as a vital cog in the Cuban revolution he felt it was time to leave for another adventure. He decided it was to be the Congo, to assist the rebels there. I believe, and I may be wrong about this, but Che knew he would not grow old peacefully, his heart lay on the battlefield. He left a letter for his children, to be opened if he was killed:

Dear Hildita, Aleidita, Camilo, Celia and Ernesto,

If you read this letter one day, it will mean that I

am no longer alive. You will hardly remember me,

and the smallest among you will have entirely

forgotten me.

 

Your father was a man who acted as he thought

best and who has been absolutely faithful to his

convictions.

 

Grow up into good revolutionaries. Study hard to

master technique, which gives you mastery over

nature. Remember that it is the Revolution which

is important and that each of us, taken in

isolation, is worth nothing.

 

Above all be sensitive, in the deepest areas of

yourselves, to any injustice committed against

whoever it may be anywhere in the world.

 

Yours always, my children. I hope to see

you again.

 

A big strong kiss from

Daddy.

His Congo and Bolivian missions were both disastrous, Bolivia proving fatal. But Che Guevara is an important historical figure, he is a prime example of what can be achieved, by only having huge determination and a dream. He was a dedicated Marxist-Leninist, the amount of effort, blood, sweat and tears he put in to further the cause of his idols was profound. When we look at politicians today who consistently misrepresent the people, it is sickening. Che dedicated his life to help the people, to demonstrate why communism was the only way forward. He was the second most powerful man in Cuba, he was loved by the people, a hero of the revolution. He was married with five children and could have grown old peacefully in Cuba, he gave everything up in Cuba to further the communist cause. He had an epic dream to bring the whole of Latin America into a socialist utopia, through armed revolution. When you realize how dedicated a human being must be to give up everything in Cuba, to help bring socialism to the whole of Latin America is astonishing. I believe the importance of Che Guevara is huge for the communist cause, he shows how communists should dedicate themselves to their beliefs. The NCMLU (Communist Party Alliance) follows the political principles of Marx, Engels, Lenin and Stalin, which is correct. But we should take from Che the honesty, dedication and self sacrifice to help the working class. With so much anti-communist feeling around the world, who accuse us of being ‘evil’, we can show them what a communist is and what we stand for. Tell them to read on Che, who only ever wanted to help the downtrodden classes of the world. For me, Che will always hold a special place in my heart, reading about him was the first time I had come into contact with communism.

Reading on him sparked off something inside me to help the communist cause. Upon reading on Che, it has led me to Marx, Engels, Lenin and Stalin. In my opinion we will never see another human being of his kind.

We must all strive to be like Che, to show self sacrifice, dedication to the cause, to fight against injustice, racism and imperialism, to help bring about social equality and change the world. To quote Marx, ‘The philosophers have only interpreted the world in different ways; the point is to change it’.

I will finish with a part of a speech from Fidel Castro, speaking to the Cuban people after the death of his comrade.

 

‘a man of profound ideals, a man in

whose mind stirred the dream of

struggle…’

 

CHE GUEVARA

1928-1967

Source

Alliance Marxist-Leninist: Who is Saddam Hussein? Portrait of a Fascist Made by Imperialism

Saddam4

We make it plain that we condemn the imperialist moves against the peoples of Iraq. Does that mean we are for Saddam Hussein?

How do we characterize Hussein?
Bluntly – he is a blood-thirsty dictator and he has suppressed not only the Kurdish peoples, but his own peoples. He has in particular suppressed the Communist and progressives.

For years as a member of the Ba’th Party, he was an instrument of the revisionist USSR’s power in Iraq, and then, he became an instrument of the US imperialists. It was the US imperialists who fed his thirst for blood. This exposes the hypocrisy of the USA’s leaders – when they piously call to depose him for the “good of the Iraqi peoples.”

Irrespective of our detestation of Hussein, at this stage to support in any way USA imperialist goals – is to play into the hands of further sabotaging the needs of the Iraqi peoples. It is the Iraqi peoples who must change their leader. It is the interference of the Western imperialist that has allowed Hussein to first come to power, and then to remain in power. But at this stage, to agree for calls for his desposition by USA and UK war-mongers – would inflict even more damage, death and destruction on the Iraqi peoples. To understand Hussein’s relationship to imperialism a little, enables one to understand the depth of Bush’s hypocrisy.

We carry therefore a short history of modern Iraq, highlighting Hussein’s role.

(i) The Modern State of Iraq

When the Ottoman Empire disintegrated, the Middle East was left in a vacuum. Into this stepped British imperialism, who disputed with France the oil of Mosul. The British won and simply created vassal states. These included in 1920, Iraq, Kuwait and Saudi Arabia. A kingdom was created under the rule of Faisal ibn Hussain. An arbitrary border between Iraq, Kuwait and Saudi Arabia was drawn by Sir Percy Cox, the British High Commissioner in Baghdad.

Iraq was administered by Britain under mandate from the League of Nations until 1932. Then it became an independent state under a new constitutional monarch, King Faisal I. Faisal, as a comprador agent of British rule, ensured British monopoly of the Iraqi Petroleum Corporation (IPC).

Until the Second World War seven successive coups left Iraq divided and unable to develop a national bourgeois revolt. The British played off the Shia Muslim masses against the minority Sunni Muslim rulers, and the Kurds against both Shias and Sunnis. The comprador agents ensured that between 1-3% of the population owned 55 % of all farmland. British monopoly of trade was complete.

King Ghazi – the son and successor of Faisal – colluded with General Bakr Sidqi of the Iraqi army to defy Britain. Even though shortly after Sidqi was assassinated, Ghazi held his course. This made him popular with the masses. He broadcast using a new radio station, messages of defiance to the British rule throughout the Middle East. The British arranged his assassination in a “car accident,” in 1939.

A pro-British agent Nur-Said came to power as a Prime Minister, while a regent took over the monarchy. By 1941 army colonels supported the Rashid Ali Keilani rebellion, which was pro-Nazi Germany. They allied with the Mufti of Palestine, a Nazi agent. The British therefore occupied the country in May 1941. British colonial rule extended till 1946. In 1947 the Portsmouth Anglo-Iraqi Treaty tried to ensure a neo-colonial presence in Iraq, with two Royal Air force (RAF) bases at Habaniyua and Sin Al Thibban.

This was hugely unpopular and led to uprisings – the al-Wathbah (The Leap). Under the leadership of the Iraqi Communist Party (ICP), uprisings forced the withdrawal of the puppet regime of Salih Jabr and the rejection of the Portsmouth Treaty. But the air force bases remained, and by 1955 the Iraqi state was part of the USA led plots to dominate the Middle East via the Baghdad Pact. The Government was led by Nuri al-Said, a comprador for the British at first, and then for the USA.

(ii) Arab Nationalism and the Ba’th party

Saddam Hussein was initially much influenced by the Rashid rebellion and the fate of Ghazi. He quickly joined the Ba’th Party.

The ideas of a so-called “Arab Socialism” were gaining favour. The Ba’th (‘Renaissance’ of the Arabs) party was founded in Iraq in 1954. Michel Aflaq and Zaki Arsouzi, in 1943, had first formed the Arab Ba’th Socialist Party, in Syria. But the Ba’th Party intended to cover all Arab countries. Its’ programme called for land reform and nationalisation of major parts of the economy, and a constitutional democracy. They represented the “middle ground,” the educated petit bourgeoisie, who wanted progressive modern change. The party’s central slogan was ‘Freedom, unity, socialism.'” What did “socialism” mean for the Arab Ba’th Socialist Party? It was a very vague and imprecise ideology, implying “national moral improvement.”

Nasserism was a specific form of Pan-Arabism, led by the Egyptian President Gamel Abdul Nasser. Starting in Egypt, Nasser called for liberation from imperialism the Middle East, using not Ba’th – but Wahda. Wahda (Arabic for “union”) was to renew Arabic “culture.” His Iraqi supporters, called for a Union with Egypt.

As a strategy of the national bourgeoisie in the Middle East, both the Ba’th and the Wahda ideologies aimed to contain the mass movement, emphasising the “Arab peoples,” and denying any class content.

When in 1958, an insurrection against the comprador regime of Nuri al-Said was successful, these two Arab movements seized the opportunity. The new Revolutionary Council of army officers was led by Prime Minster Qasim. He was in alliance with the Iraqi Communist Party (ICP). Imperialist troop maneuvers were foiled by the popularity of the Qasim government. This was a national bourgeois revolt.

But, the Iraqi national bourgeois was weak. A pro-Wahda (ie. pro-unity with Egypt) revolt was launched, but failed. Already the Syrian state had ‘united’ with the Egypt state under Nasser’s leadership. Saddam Hussein was one of a group that tried to assassinate Qasim, but failed. Despite its weakness, the national bourgeoisie was partly successful. Although during this period the ICP was severely hunted and persecuted, the ICP ensured a major agrarian land reform from 1958 to 1963. Moreover the Iraq petroleum Company was subject to Law 80 in 1961 – which limited the company’s rights to only 0.5% of the concession, and secured oil rights of 99.5% for the Iraqi state.

(iii) Ba’th Fascist Rule – From USSR Comprador State to USA Comprador State

But by 1963 Qasim had isolated himself. The Ba’thists created a coup and in a bloodbath massacred the revolutionary forces of the democratic revolution. Communists in particular were massacred. It is clear that the CIA was heavily involved, and numerous sources attest to this.

Almost immediately Law 80 was “side-stepped.” It could not simply be repealed as the Iraqi people were so much in favor of it. But the IPC simply stepped up oil production enormously to recoup their own profits. Another immediate step was to suppress the northern region of the Kurdistan nation. A war of genocidal proportions was launched.

The Arab Union of the United Arab Republic (dominated by Egypt) was declared. However this lasted only a few months for Iraq, and the Union died. Even Syria left the UAR.

Continuing its purge of all left and communist forces, the Ba’th eventually destroyed all opposition. Now it fell to internecine fighting. The leadership tore itself apart in a search for individual power. By 1963 a revolt of the army dismissed the Ba’th party from power. Between 1963-1968 a regime headed by ‘Abd al-Salam ‘ Arif tried to recreate a partnership with Egypt. But this was only temporary. Throughout this period all democratic reforms including those of the Land reform were turned back. Eventually this led to proletarian and peasant revolts.

The Ba’thists gained control of the student movement – led by Saddam Hussein – and helped to bring about the return to power of the Ba’th Party in 1968. At this stage, it was led by Nadhium Kazzar. It was a brutal regime and once more attacked communists and any who continued to call for democratic reforms. Again brutal wars against Kurdistan were led – in 1970 by President al-Bakr.

At this juncture the Ba’th Party became the comprador vehicle for the revisionist USSR. The stimulus had been the refusal of the IPC to undertake drilling and oil exploitation for the Ba’th government in the State controlled territories of Law 80. This led to a dubious alliance with the remnants of the Iraqi CP – termed the National Action Charter. It did not prevent further persecution of communists.

By 1975 the Ba’th party was getting a huge oil revenue – $8000 million – or 6 times the 1972 level. A new very rich bourgeois came into existence. They formed the social strata represented by the Ba’th.

By 1977 Saddam Hussein was the head of the government. He intensified the dictatorial nature of the regime. The “Knight” as he was called – purged all rivals. After the fall of the Shah of Iran – the local puppet of the USA – in February 1979 the USA had to seek a new pliable regime. Hussein simply switched over from the USSR to the USA, who used Hussein’s Iraq. During this period they fostered the long running Iraq-Iran war.

The US not only tolerated – but encouraged Husseins’ barbarous polices. They also fed him all the arms he asked for.

(v) Hussein Falls Into the Trap Set by April Glasbie, US Ambassador

As stated earlier, the borders of the area were arbitrarily set. That between Kuwait and Iraq had long been contentious. But the invasion of Kuwait by Iraq was a careful trap for Iraq. Why had the USA decided to spring this trap? Because the Israeli state was its lynch pin in the Middle East, and was facing considerable attention due to its violently racist and genocidal attacks on the Palestinians. The USA led coalition war against Iraq – “Desert Storm” served its purpose to divert the attention away from the Israelis.

It is clear that Iraq was ‘set up’ – Iraq was “assured” before its invasion of Kuwait that the United States imperialists had no interest in the dispute between Iraq and Kuwait: Four days before President Saddam Hussein ordered the invasion of Kuwait, the US Ambassador in Baghdad, April Glaspie, assured him that ‘we have no opinion on the Arab-Arab conflicts like your border disagreement with Kuwait.’

She added that the US Secretary of State, James Baker, “has directed our official spokesman to emphasize the instruction,” first given in the 1960s, “that the issue is not associated with America.” The Guardian has the official minutes of the meeting. . . . US officials do not question their authenticity. The transcript shows that Ms Glaspie expressed considerable sympathy for President Saddam’s quest for higher oil prices, the immediate cause of his confrontation with Kuwait.
“I admire your extraordinary efforts to rebuild your country,” she said, “I know you need funds. We understand that, and our opinion is that you should have the opportunity to rebuild your country.” (Guardian, 12 September 1990; p. 7).

Further, on 31 July, two days before the invasion of Kuwait, US Assistant Secretary of State John Kelly, facing the House Foreign Affairs Committee: “Stressed repeatedly in testimony before the Committee that the US had no defense treaty with Kuwait and no obligation to come to its aid if attacked by Iraq.” (Guardian, 20, September 1990; p. 8).

CONCLUSION

Saddam Hussein has been from early on a creature of the USA imperialists. He is a bitter opponent of communists, and of the Iraqi peoples.

But, once again – to assist USA imperialism to depose him now and in the way the intend – is to condemn the Iraqi people to short term destruction, and a longer term dependence upon USA imperialism.

Suggested references:

CARDI: Committee Against Repression and for Democratic rights in Iraq: Saddam’s Iraq _ Revolution of Reaction; London 1989.
Efraim Karsh & Inari Rautsi Saddam Hussein. A Political Biography; New York 1991.

Source

Labour Party (EMEP): Kobane needs international support

Members of the PKK wait to greet the body of a slain Iraqi Kurdish PKK fighter on the road from Erbil.Ayman Oghanna for Al Jazeera America

Members of the PKK wait to greet the body of a slain Iraqi Kurdish PKK fighter on the road from Erbil.Ayman Oghanna for Al Jazeera America

Iraq has effectively been divided into three parts after the US led occupation. Kurds have taken control in the North while the Shiites in the East and South and the Sunni Arabs in the West. The power in Iraq has been shared between the Shiites, Sunnis and Kurds but the collaboration did not last long. Kurds virtually announced a free Kurdistan in the North. Sunnis complained from their lack of say in governance of the country and distribution of petrol, opposing and resisting Shiites, sometimes engaging even in armed struggle. During this period, radical religious powers such as Al-Qaeda and Salafi Jihadists gained strength. These groups have been supported by Turkey, Qatar and Saudi Arabia.

Later, when the armed struggle supported by the imperialist powers – led by the US – against the government in Syria started, the Al Qaeda and Salafi forces in Iraq entered Syria and became the main force fighting against the Assad regime. They had the weaponry, the experience and a centrally led organisation while the FSA forces supported by the US were fragmented, disorganised and lacked any real experience of war. The anti-Assad coalition led by Turkey, Qatar and Saudi Arabia as well as the US and the EU, have supported the Al Nusra Front that included Al Qaeda linked and other radical groups, believing that they had the power to defeat Assad. However, the practices of radical religious groups in Afghanistan, Pakistan, Libya, Egypt and Syria have disturbed the US and its allies. These groups, while serving the US and its allies on the one hand, tried to establish Sharia Law in their localities and caused damage to US interests on the other.

Following these developments, especially after the murders of US diplomats in Libya by radical groups and the events in Egypt, the US and its allies reduced the support provided to radical religious organisations in Syria.

Groups such as Al Qaeda, Al Nusra, Salafis, etc., upon realising they cannot defeat the Assad forces in Syria, declared their sovereignty and set up an ‘Islamic State’ covering the areas of Syria under their control and areas under Sunni Arab control in Iraq.

Meanwhile, taking advantage of the vacuum created by the fighting between the Assad forces and FSA and Al Nusra, Syrian Kurds have created three autonomous regions near the Turkish border in Northern Syria. The area controlled by the Kurds is called Rojava (meaning West or the West of Kurdistan in Kurdish). Kurds, having established their autonomous Cantons in Rojava, armed themselves, mainly against the attacks from radical religious groups. .

Representatives of these Cantons have been arguing that governance was not exclusively Kurdish but Arabs, Yazidis, Armenians, Turkmens and other minorities and religious groups were sharing power and hence they created a democratic autonomous alternative. But it is clear that the PKK’s political line is dominant in the governance of Rojava. This line is represented by the Democratic Union Party (PYD). The security of Rojava is under the domain of the armed People’s Protection Units (YPG) and the Women’s Protection Units (YPJ). YPG/YPJ have about 5000 armed members. Following the outset of the civil war in Syria, PYD has political and military control of the cities of Kobane, Afrin and Cinderas in the state of Aleppo; the towns of Amude, Derik and Efrin in the state of Hasaka, the cities of Darbasiyah, Resulayn (across Ceylanpınar in Şanlıurfa, Turkey) and the town of Tirbesipiye. YPG, the armed wing of PYD, have taken over the town of Resulayn from Al Nusra forces after an armed conflict and brought the tanks they seized from them to Kobane.

The three Cantons in Rojava do not share borders with each other. Assad Regime established Sunni Arab villages between Kurdish settlements. These are now under IS control.

About four months ago, IS armed forces have started their advance towards the east aiming for Baghdad. They quickly took over the city of Mosul, a major city in Iraq. In the areas of the advance and in Mosul, where Sunni Iraqi soldiers put up no resistance and handed their weapons over to IS. Some joined the ranks of IS and some fled to the east. While IS was advancing on Baghdad, the Shiite leader of the Iraqi government was replaced, the US provided the Central Iraqi government with arms and military experts, and supported them with air strikes against IS. The IS reaction was to do a u-turn and advance on the Kurdish areas of Iraq and Syria. The Barzani forces of the Kurdistan Regional Government of Northern Iraq could not withstand the IS onslaught and retreated, abandoning their positions and weapons.

In Iraqi Kurdistan, the Kurdistan Workers’ Party (PKK) forces (which have been waging a war for 30 years against Turkey until the recent ceasefire) confronted the IS forces and managed to halt their advance in places. IS forces got closer to the Iraqi Kurdistan’s capital Erbil and the important oil town of Kirkuk and they overran the Yazidi city of Shengal. Tens of thousands of Yazidis fled Shengal and have taken refuge in Turkey.

The US support helped stop the IS advance on Iraqi Kurdistan and following this IS began to attack Kobane. It is now surrounded on three sides by IS forces in the east, south and west, except for the border with Turkey in the north. IS forces have tanks and heavy artillery while the YPG/YPJ forces in Kobane only have light infantry rifles. The elderly, women and children in Kobane have escaped to Turkey. Tens of thousands are in the town of Suruc in Turkey, camping in the open and going hungry.

Kobane wants arms to fight against IS. They want Turkey to open a corridor for them to bring tanks and heavy artillery abandoned in the Eastern Canton by the Iraqi Kurds and Iraqi military forces and seized by the YPG. IS forces are now within 1km of the YPG positions.

Our party and other progressive democratic forces in Turkey are staging demonstrations to get peoples’ support and force the government to help Kobane. Those that support the resistance go to Suruc in the Turkish side to access Kobane to bring in food and other supplies. They guard a 25km stretch of the Turkish-Syrian border to prevent IS militants filtering into Turkish borders and launching an attack from the north. Many Kurdish youth from Turkey cross the border into Kobane to fight against IS and support the resistance.

Meanwhile, the Turkish government has joined the US coalition against IS and wants to create a 40-50km wide buffer zone in Rojava, along the Turkish-Syrian border to settle the Syrian refugees that crossed the borders into Turkey during the civil war. The populations in this zone will be disarmed (hence PYD and YPG will lose control and influence in Rojava and the coalition forces, including Turkey, will defend the area against IS and the Assad forces). Later, an FSA army to be set up in this area to fight the Assad forces.

The progressive and democratic forces in Turkey stand against this plan. We oppose a buffer zone and the Turkish military crossing the border. We want Turkey to stop supporting IS and allowing its militants use Turkish borders. We want Turkey to support the peoples of Kobane and Rojava against IS attacks.
Our party believes that in the current situation international solidarity and support for Kobane is vital. We call on your parties and organisations and your peoples to support and show solidarity with Kobane and Rojava.

We think that solidarity with the peoples of the region against the imperialist plans and attacks is one of the most urgent political tasks.

Imperialism will lose and the victors will be the peoples.

Long live the Kobane resistance

Labour Party (EMEP), Turkey

Source

Reactionary anti-communist bourgeois theories that conceal the restoration of capitalism in Soviet Union (1953-1990) Part B

site2

Reactionary anti-communist bourgeois theories that conceal the restoration of capitalism in Soviet Union (1953-1990) Part B

B. The reactionary anticommunist bourgeois theory of “developed socialism” of the Khrushchevit social-democracy

After the violent overthrow of the Dictatorship of the Proletariat and the victory-triumph of the Khrushchevian revisionist counter-revolution in the Soviet Union in 1952, while pursuing the scheduled and systematic policy of gradual restoration of capitalism facilitated by the implementation of capitalist economic reforms, the leading anti-communist group of Khrushchev-Brezhnev of, what is by now, the bourgeois social-democratic Communist Party of the Soviet Union (CPSU), sought to formulate a suitable theory to conceal this reactionary process from socialism-communism to capitalism.

In their attempt to formulate a new and suitable “theory” concealing this reactionary process and the emerging society of restored capitalism euphemistically called “developed socialism” (!), the Khrushchevian-Brezhnevite revisionists came up with the well-known theory of “advanced socialism”

Both the theory of “developed socialism” promoted by the Khrushchevian traitors and the theory of“convergence” promoted by the western bourgeois reaction are anti-communist reactionary bourgeois theories because during the period of their dominance (1955-1990) were directed against the communist perspective of the Proletariat, obscured the Proletariat’s communist prospect presenting the restored capitalism of the Soviet Union as “the communist” future while, at the same time, they were in total breach with the objective historic progress of society toward socialism-communism. The class character and content of the two theories was based on the defence of capitalism: the theory of “convergence” defended was traditional capitalism of the Western countries, while the theory of “developed socialism” defended the restored capitalism of the Soviet Union and the other revisionist countries (Details can be found at “Anasintaxi”, no. 373, August 2012, p. 3).

Since the treacherous, renegade Khrushchev-Brezhnev group “managed”, in the 20th Congress of CPSPU in 1956, to present arbitrarily and provocatively the capitalist-fascist Yugoslavia of Tito as “socialist”(!) – a view imposed on the international communist movement (N.S. Khrushchev: “Report in 20th Party Congress, 1956:“Yugoslavia has not small successes in the socialist construction”, a clear proof that the Khrushchevian clicque had decided to follow Tito’s counter-revolutionary, capitalist path – and promoted a kind of “socialism”(!) that would result “peacefully” without the need of the Dictatorship of the Proletariat, this group officially confessed and publicly admitted, during the 22nd of Congress of CPSU (1961), that there was neither Dictatorship of the Proletariat nor revolutionary communist party in the Soviet Union of that period and that these had been replaced by the “state of all people” and “party of all people” and mentioned, for the first time, the “transition period from capitalism to socialism” to which the Dictatorship of the Proletariat “corresponded”. At the same time, they formulated the theory of “developed socialism” without using yet the terms that became well known later: “developed socialism” and “advanced socialist society”.

The theory of “developed socialism” promoted by the Khrushchevian renegades constitutes, as it will be shown below, a complete revision and a blatant, crude rejection of revolutionary Marxism.

As a theory, the so-called “developed socialism” has nothing in common with the revolutionary theory of Marx-Engels-Lenin-Stalin, it amounts to its negation and it is an anti-communist bourgeois theory. The so much advertised, but non-existent “advanced socialist society” was nothing more than the restored capitalism of the Khrushchevian-Brezhnevite period as shown in previous articles. According to the anti-communist Brezhnev, this type of society had already been in November of 1967, that is to say, when capitalism had been fully restored (on the occasion of the 50th anniversary of the October Revolution, he had declared that “In the USSR a developed socialist society has been built).

The theory of “developed socialism” dominated later the new bourgeois constitution (i.e. the constitution of the restored capitalism) of the Brezhnevite period while the euphemistically called “advanced socialist society” found its full expression in this – a constitution which, for the first time, officially legalized and confirmed not only the state-capitalist (articles 10-11) and collective-capitalist ownership (article 12) but also the individual capitalist ownership (articles 13-17) in the Soviet Union’s society of that time. It also legalized the capitalist competition between the autonomous enterprises, the “socialist commodity producers”, and the capitalist profit (article 16). In this constitution, the content of the “advanced socialist society”, that is, of the Soviet Union’s restored capitalism is generally described.

The elements-views from which the theory of “developed socialism” was made are the following: “the party of all people”, “the state of all people”, “transition period from capitalism to socialism”, “three phases of the communist society”, “socialism: a new autonomous mode of production”. Concerning the theory of “advanced socialism” and the euphemistically called “advanced socialist society” there is a vast literature of many articles and books. However, we will make a limited use of them and cite only those extracts that highlight the counter-revolutionary essence of this bourgeois reactionary theory.

1. “Party of all people” or revolutionary communist party?

In the 22nd Congress of CPSU (1961) it is mentioned: “our Marxist-Leninist Party that was born as a party of the working class, has become the party of all people”, an anti-Marxist view which later passed to the new Brezhnevite bourgeois constitution (1977) where it was formulated as: “CPSU exists for the people and to serve the people”. (Article 6 of the Soviet Constitution, 1977)

Some quick comments on the anti-Marxist view “party of all people”:

1. The adoption of this view meant the abandonment of the Marxist theory not only about the revolutionary, new type of party but also about all political parties considered as separate organisations that defend the different interests of particular classes.

2. The Khrushchevian social democrats promoted the well known bourgeois view according to which parties stand above classes and they are, therefore, defenders of the interests of “most” or “all classes”.

3. As known, according to revolutionary Marxism there are no organisations and parties that belong to “all people”, that is parties of all classes. Since, the Khrushchevian revisionists themselves admitted that there was not any more a revolutionary communist party in the Soviet Union of that period, because, according to them, the Marxist-Leninist party had been replaced with the party of “all people”, then the new CPSU, that is the so-called party of “all people” could not be nothing else but a bourgeois, social-democratic party. Consequently, the revolutionary, until the beginning of the 1950’s, CPSU changed its class character: from a Marxist-Leninist party of the working class, it became a bourgeois party: a defender of the class interests of the emerging soviet bourgeoisie.

The character of a party, according to Marxism, is determined first of all by the its ideology and, among others by its programme. The new CPSU, that is, the so-called “party of all people”, was not guided any more by the ideology of the revolutionary Marxism, that is, Leninism-Stalinism, but by the counter-revolutionary ideology of Khrushchevian revisionism (which is a version of bourgeois ideology).

The new CPSU of Khrushchev-Brezhnev as well as the Khrushchevian parties of all countries in the following decades were (and still are) bourgeois, social-democratic parties because: a) they were not guided revolutionary Marxism, b) they had reformist programmes that cannot lead to the overthrow of capitalism, c) they adopted a anti-Marxist view of socialism-communism since they advertised the restored capitalism of the Khrushchev-Brezhnev-Gorbachev period as “socialism”(!), in other words they claimed that there was allegedly “socialism” in the Soviet Union during 1953-1991.

4. Neither socialism can exist nor the construction of socialism can continue without a revolutionary communist party of a new type, that is, of Leninist-Stalinist type. Therefore, after 1953, it was inevitable that the construction of socialism in the Soviet Union finally stopped and the new CPSU, that is, the “party of all people”, was at the forefront of the capitalism economic reforms that completely eliminated socialism and resulted in the full restoration of capitalism by the mid 1960’s.

5. Socialism-communism cannot to constructed without a marxist-leninst-stalinist party, precisely because this party “has always as a primary task the class, political organisation of the proletariat as an autonomous political party and sets the next goal to be the struggle for the Dictatorship of the Proletariat” (MARX-ENGELS: Bd.18, pp.267-268, Berlin 1969) and also it is the party that : first, is the organiser and the leader of the giant work of socialist-communist construction and second, without this party the Dictatorship of the Proletariat possible cannot exist. That’s why Stalin is very right to point out that “the dictatorship of the proletariat is exercised through the Party, that without a united and cohesive party the Dictatorship of the Proletariat cannot exist”, that “the Dictatorship of the Proletariat is possible only through the party that is its guiding force” and that “the Dictatorship of the Proletariat is complete only if it is led by one party, the Communist Party, which does not and cannot share power with other parties” (Stalin, Collected Works vol. 10)

2. “State of all people” or Dictatorship of the Proletariat

In relation to the state of the Soviet Union of that period, it is mentioned in the 22nd Congress that the state of the working class had been transformed to the “all people’s state”: “The state of all people is the new state in the development of the socialist state, the most important landmark in the path of development of the socialist state to a communist self-governing society” (22nd Congress of CPSU, p. 205, Athens 1961) and that “the dictatorship of the proletariat was not any more necessary …” (ibid, p. 208) for the construction of socialism in the Soviet Union. Later, this anti-Marxist view passed to the new Constitution (1977) – from which the term Dictatorship of the Proletariat had been deleted (justifiably so since it had been already been overthrown in 1953) – and which confirms that the Soviet Union was not any more the state of Dictatorship of the Proletariat as it was in the era of Lenin-Stalin but the “state of all people” (“Constitution 1977”, p. 42: The Union of Soviet Socialist Republics is a socialist state of the whole people).

The anti-marxist view of the Khrushchevian about the “state of all people” is raising some important questions worth of special consideration:

First, by denying the necessity of the Dictatorship of the Proletariat during an important phase of development of socialism-communism, the soviet revisionists-social democrats and in such an important and central question the reformist Khrushchevian parties abandoned Marxism and it known that nobody can be regarded as Marxist without the recognition of the dictatorship of the proletariat as Lenin noted: Only he is a Marxist who extends the recognition of the class struggle to the recognition of the dictatorship of the proletariat. That is what constitutes the most profound distinction between the Marxist and the ordinary petty (as well as big) bourgeois. This is the touchstone on which the real understanding and recognition of Marxism should be tested” (Lenin, “State and revolution”)

Second, it is important to note the open confession and the official admission made by the Khrushchevians that there was no Dictatorship of the Proletariat in the Soviet Union of that period and, it was exactly for this reason why there was no socialism any more. Moreover, the construction of socialism had stopped in 1953 after the death-murder of Joseph Stalin. The continuation of socialist construction in a country without the Dictatorship of the Proletariat is totally impossible and inconceivable. Also, the maintenance of socialism is unimaginable without the Dictatorship of the Proletariat since, for Marx, the concepts of socialism and Dictatorship of the Proletariat are inseparable. As early as 1850, Marx noted that socialism: the class dictatorship of the proletariat as the necessary transit point to the abolition of class distinctions generally, to the abolition of all the relations of production on which they rest, to the abolition of all the social relations that correspond to these relations of production, to the revolutionizing of all the ideas that result from these social relations” (MARX-ENGELS: vol.7, p. 89-90, Berlin 1969).

Third, the Khrushchevian concept of the “state of all people” not only meant a rejection of the Dictatorship of the Proletariat but it constituted a complete revision of the Marxist theory on the state of Dictatorship of the Proletariat, and the state in general, and this is why Lenin emphasized that “the essence of Marx’s theory of the state has been mastered only by those who realize that the dictatorship of a single class is necessary not only for every class society in general, not only for the proletariat which has overthrown the bourgeoisie, but also for the entire historical period which separates capitalism from “classless society”, from communism” (Lenin, State and Revolution.”)

Fourth, the Khrushchevian concept of the “state of all people” bears no relation to Marxism. It is alien to Marxism because according to the Marxist theory there is no state standing above classes, that is to say, “state of all classes” of a society; this is a bourgeois view. On the contrary, the state has always a class character: either it is the state of the bourgeoisie or it is the state of the proletariat. In the period of transition from capitalism to socialism-communism, there can be either the dictatorship of the proletariat or the dictatorship of the bourgeoisie. This is why the famous English Marxist George Thomson, in 1971, very rightly emphasized that the “state of all people” declared by the treacherous Khrushchevian clique was in reality “a dictatorship of the bourgeoisie”, or to be more exact, a dictatorship of the new soviet bourgeoisie.

Fifth, the Dictatorship of the Proletariat, according to the teaching of Marx-Engels-Lenin-Stalin, is established right after the victory of the armed Proletarian Revolution and the complete annihilation of the state machinery, is preserved and strengthened and it is absolutely necessary for the whole transitional period from capitalism to socialism. The state of the Dictatorship of the Proletariat is never transformed to the “state of all people” (it is also known that Max and Engels rejected with irony the so-called “free state” in the Critique of the Gotha Program. The Dictatorship of the Proletariat exists until it withers away in the higher stage of communist, in the communist classless society: For the state to wither away completely, complete communism is necessary” and that The state will be able to wither away completely when society adopts the rule: “From each according to his ability, to each according to his needs”. (Lenin, “State and Revolution”)

Source

The Great Soviet Encyclopedia on John Adams

US_Navy_031029-N-6236G-001_A_painting_of_President_John_Adams_(1735-1826),_2nd_president_of_the_United_States,_by_Asher_B._Durand_(1767-1845)-crop

Adams, John

Born Oct. 19, 1735; died July 4, 1826. American political leader and statesman.

During the American Revolution (1775–83), Adams was a member of the First and Second Continental Congresses. He took part in the negotiations which ended with the signing of the Treaty of Paris (1783) between the USA and Great Britain; moreover, he became the first US minister to Great Britain (1785–88). Adams later became one of the leaders of the Federalist Party, which represented the interests of the conservative wing of the American bourgeoisie. During the years 1789–97 he served as vice-president and from 1797 to 1801 as president of the USA. Adams’ administration was marked by the adoption in 1798 of the Alien and Sedition Acts, which were directed against revolutionary emigrants from Europe and which made it difficult to acquire American citizenship. The Sedition Act provided for imprisonment for criticizing the government.

REFERENCES

Efimov A. V. Ocherki istorii SShA, 2nd. ed. Moscow, 1958. Chapter 2.
Morse, J. T. John Adams. Boston-New York, 1912.

The Great Soviet Encyclopedia on Thomas Paine

800px-Thomas_Paine_rev1

Paine, Thomas

Born Jan. 29, 1737, in Thetford, England; died June 8, 1809, in New York (USA). Public and political figure in the USA and Great Britain. A member of the revolutionary wing of the 18th-century Enlightenment.

In 1774, Paine left England for North America, carrying a letter of introduction from B. Franklin. He soon emerged in the forefront of the proponents of independence for the British colonies. In the pamphlet Common Sense (1776), Paine,taking as his point of departure rationalist theories of natural law and the social contract, advocated the idea of the sovereignty of the people and the right to revolution. He demonstrated that it was necessary for the North American colonies to break away from Great Britain and form an independent republic. The ideas expressed in Common Sense were reflected in the Declaration of Independence (1776). Paine, like Jefferson, favored the abolition of slavery.

During the War of Independence in North America (1775–83), Paine wrote a series of 13 pamphlets under the title The American Crisis (1776–83). From 1777 to 1779 he was secretary of the congressional Committee for Foreign Affairs,and in 1781 he took part in the Paris negotiations with the French government concerning aid for the North American colonies.

Paine was an ardent supporter of the French Revolution, which broke out while he was in Great Britain. In the treatise The Rights of Man (1791–92) he developed the ideas of popular sovereignty and republicanism and defended the revolutionary principles of the French Declaration of the Rights of Man and of the Citizen. Paine’s book was banned in Great Britain, and he was forced to emigrate to France, where he was elected a member of the Convention. However, he broke with the Jacobins on the question of the execution of Louis XVI, and in late 1793 he was put in prison, where he spent about a year. As a result of his experience in France, his social views developed, particularly his criticism of bourgeois property relations from a petit bourgeois standpoint. In Agrarian Justice (1797), he condemned the system of property distribution and speculated that labor is the source of capitalist profit. He developed a Utopian plan for state support of the poor through taxation of the propertied classes and through the nationalization of land under a redemption system.

Paine was among those who introduced atheistic traditions into America. In the Age of Reason (1794) the force of reason is decisively pitted against religious delusions. As a philosopher, Paine is perhaps best described as an inconsistent metaphysical materialist.

In 1802, Paine returned to the USA, where, persecuted by reactionary political and religious circles, he died in poverty. The views of Paine—the most consistent spokesman of the radical democratic tendency in the American sociopolitical movement of the late 18th century—directly influenced the shaping of the ideology of the Chartist movement in Great Britain.

WORKS

The Complete Writings, vols. 1–2. New York [1945].
In Russian translation:
Izbr. soch. Moscow, 1959.

REFERENCES

Marx, K., and F. Engels. Soch., 2nd ed., vol. 2, pp. 598–99; vol. 10, p. 365.
Aptheker, H. Istoriia amerikanskogo naroda [vol. 2]: Amerikanskaia revoliutsiia 1763–1783. Moscow, 1962.
Gromakov, B. S. Politicheskie i pravovye vzgliady Peina. Moscow, 1960.
Gol’dberg, N. M. Tomas Pein. Moscow, 1969.
Parrington, V. L. Osnovnye techeniia amerikanskoi mysli, vol. 1. Moscow, 1962.
Conway, M. D. The Life of Thomas Paine, vols. 1–2. New York-London, 1892.
Aldridge, A. O. Man of Reason: The Life of Thomas Paine. Philadelphia, 1959.

I. P. DEMENT’EV

The Great Soviet Encyclopedia on Thomas Jefferson

Official_Presidential_portrait_of_Thomas_Jefferson_(by_Rembrandt_Peale,_1800)

Jefferson, Thomas

Born Apr. 13, 1743, in Albemarle County, Va.; died July 4, 1826, at Monticello. American statesman and public figure.

On his mother’s side Jefferson was descended from a family of rich Virginia landowners. He received a broad education. From 1769 to 1774 he was a deputy to the Virginia legislature. He helped organize a revolutionary group in Virginia—the Committee of Correspondence, which was modeled after similar committees in other colonies. In 1775, Jefferson was elected a deputy to the Continental Congress, which had decided on the separation of the North American colonies from Great Britain. He was the author of the Declaration of Independence, which Congress accepted during the War for Independence in North America (1775-83). Jefferson intended to extend the rights enunciated in the declaration to Negro slaves, but the slaveowners were opposed. He played an active role in the democratization of the social structure of Virginia.

As a member of the Virginia House of Delegates between 1776 and 1779, Jefferson took part in a review of extant legislation. The feudal order in landownership—primogeniture, semifeudal rent, and prohibition of the sale of lots of land—was abolished. He was the author of the Statute on Religious Freedom, and he worked hard for its adoption, influencing the constitutions of other states and the constitutional provision for the separation of church and state in the USA. In 1784, Jefferson urged Congress to nationalize the lands of the West and prohibit slavery in all newly admitted states. However, the latter suggestion was accepted only in connection with the Northwest Territory. From 1779 to 1781,Jefferson was governor of Virginia, from 1785 to 1789, US minister in Paris, and from 1790 to 1793, secretary of state in G. Washington’s first administration. He welcomed the Great French Revolution, but he considered it expedient for the USA not to participate in the military struggles in Europe.

Jefferson was an outstanding representative of the left revolutionary wing of the 18th-century Enlightenment. Expressing the interests of farmers and the petite bourgeoisie, he criticized the American Revolution for its incompleteness and pointed to the necessity for a democratic solution of the agrarian question, the abolition of slavery, and the granting of political rights to all the people. He considered the Constitution of 1787 insufficiently democratic and argued that it required a supplementary bill of rights. Jefferson carried on a long polemic with the leader of the Federalist Party, A. Hamilton, who represented the interests of the powerful bourgeoisie of the Northeast. Jefferson considered private property a natural right of man and saw in it the basis of the harmony of interests of society, influenced by the Physiocrats, he exaggerated the role of agriculture, considering it the main source of social wealth. Later, he recognized the necessity for the development of American industry and supported a strict equilibrium between agriculture, industry, trade, and banks. He advocated a democratic solution of the agrarian question.

Jefferson’s disagreement with the policies of Washington’s administration forced him to retire from office. He led the opposition Democratic-Republicans, and his democratic slogans were supported by the people. In 1796, Jefferson was elected vice-president, and from 1801 to 1809 he was president of the USA. As president, Jefferson pursued a moderate policy of compromise among the various strata of society. During his presidency many reactionary laws that had been adopted during the presidency of his predecessor, J. Adams, were abolished, and the army, navy, and government bureaucracy were reduced. In foreign affairs, Jefferson’s presidency was distinguished by the acquisition of French Louisiana in 1803 and the establishment of diplomatic relations with Russia in 1808-09. In 1807 he declared an embargo that prohibited the export of all goods from the USA, in the hope that this would cause difficulties for Great Britain and France, which had been seizing American merchant vessels. However, the embargo hurt primarily the economy of the USA, and it was lifted in 1809.

After he left the presidency, Jefferson retired from political life. Progressive forces in the USA draw on the best Jeffersonian traditions in the struggle for peace and democracy.

WORKS

Papers, vols. 1-17. Edited by J. P. Boyd. Princeton, N.J., 1950-65. The Writings of Thomas Jefferson, vols. 1-20. Washington, D. C., 1903-04.

REFERENCES

Marx, K., and F. Engels. Soch., 2nd ed., vol. 16, p. 17.
Foster, W. Ocherk politicheskoi istorii Ameriki, 2nd ed. Moscow, 1955. (Translated from English.)
Efimov, A. V. Ocherki istorii SShA, 2nd ed. Moscow, 1958.
Ocherki novoi i noveishei istorii SShA, vol. 1. Moscow, 1960.
Zakharova, M. N. “O genezise idei T. Dzheffersona.” Voprosi istorii, 1948, no. 3.
Al’ter, L. B. Burzhuaznaia politicheskaia ekonomiia SShA. Moscow, 1971. Pages 64-70.
Parrington, V. Osnovnye techeniia amerikanskoi mysli, vols. 1-2. Moscow, 1962. (Translated from English.)
Kimball, M. Jefferson. [Series 1-3.] New York [1943-50].
Cunningham, N. E. Jeffersonian Republicans.… Oxford, 1958.
Peterson, M. D. The Jefferson Image in the American Mind. New York, 1960.
Malone, V.Jefferson and His Time, vols. 1-3. Boston, 1948-62.

A. A. FURSENKO

The Great Soviet Encyclopedia on James Madison

James_Madison

Madison, James

Born Mar. 16, 1751, in Port Conway, Va.; died June 28, 1836, in Montpelier, Va. American statesman.

Madison took part in the War for Independence (1775-83). He was the author of a proposal that formed the basis of the American Constitution (1787). In a series of articles written for the press, Madison defended the new constitution and advocated broadening the power of the central government. After first supporting the Federalists, Madison later joined the Republicans and headed their right wing in Congress. From 1789 to 1797 he was a member of the House of Representatives. From 1801 to 1809 he served as secretary of state in the administration of T. Jefferson. He was president of the USA from 1809 to 1817. In the first period of his presidency Madison was occupied primarily with foreign policy problems connected with the Anglo-American War of 1812-14. During his second term he advocated the general development of American industry.

The Great Soviet Encyclopedia on Benjamin Franklin

BenFranklinDuplessis

Franklin, Benjamin

Born Jan. 17, 1706, in Boston; died Apr. 17, 1790, in Philadelphia. American educator, statesman, and scientist.

The son of a craftsman of modest means, Franklin went to work at the age of ten, at first in his father’s shop and later in his older brother’s printing shop. In 1723 he moved to Philadelphia; the following year he went to London and remained there until 1726. In 1727 he founded his own printing business in Philadelphia. Devoting his free time to self-education, Franklin became one of the most educated men of his day. He published The Pennsylvania Gazette from 1729 to 1748 and Poor Richard’s Almanac from 1732 to 1758. In Philadelphia, Franklin founded the first circulating library in the English colonies (1731), the American Philosophical Society (1743), and the Academy for the Education of Youth (1751), which was the forerunner of the University of Pennsylvania. From 1737 to 1753 he was deputy postmaster of Pennsylvania, and from 1753 to 1774 deputy postmaster general for all the North American colonies. Franklin was one of the initiators of the first congress of colonial representatives (the Albany Congress, 1754), to which he proposed a plan for uniting the colonies. From 1757 to 1775 (except for 1762–65), he represented the colonies in London.

Shortly after the American Revolution began, Franklin returned to his homeland. He was chosen a member of the Second Continental Congress and helped draft the Declaration of Independence. From 1776 to 1785, Franklin was an envoy in Paris, where he vigorously promoted the international interests of the USA. He was instrumental in concluding a treaty of alliance with France (1778) and the Peace Treaty of Versailles (1783), whereby Great Britain recognized the independence of the USA. In 1785, Franklin was chosen president of the executive council of Pennsylvania, and in 1787 he was a member of the Constitutional Convention that drew up the US Constitution.

The foundation of Franklin’s political views was the belief in man’s natural and inalienable right to life, liberty, and property. Believing that the consent of the people is the foundation of the state, he sanctioned the people’s right to rise up when the government violates this understanding. Franklin originally favored the independence of the colonies within the British Empire, but after the revolutionary movement developed, he favored the separation of the colonies from the mother country and the declaration of political independence. At the time of writing the Constitution, Franklin upheld the principle of the federation of all the states while retaining a broad range of states’ rights; he opposed an expanded executive power and favored general suffrage not restricted by property qualification. Franklin was strongly opposed to slavery.

In the area of political economy, Franklin was opposed to the prevailing mercantilist theory and advocated the economic view of the Physiocrats. A half century before A. Smith, he formulated the labor theory of value, becoming, in the words of K. Marx, “one of the first economists who . . . discerned the true nature of value” (K. Marx and F. Engels, Soch., 2nd ed., vol. 23, p. 60, footnote).

In his philosophical views, Franklin was a deist. He contrasted the idea of natural religion, in which the role of god is reduced to the act of creating the world, to orthodox religious dogma; he regarded motion as an immanent property of matter. Franklin’s ethical views were based on the idea of the natural, utilitarian character of morality, which should be free from religious sanction.

As a scientist, Franklin’s attention was drawn to the most diverse phenomena of nature. He collected extensive data on gale winds (northeasters) and proposed a theory to explain their origin. Franklin was one of the first to study the velocity, dimensions, and course of the Gulf Stream, which he named. However, Franklin’s major field of study was physics. His letters to P. Collinson, a fellow of the Royal Society of London, who published them at his own expense,were of great help in disseminating throughout Europe Franklin’s ideas about various aspects of physics. Franklin measured the heat conductivity of various materials, studied the phenomena of liquid cooling during evaporation, and researched the movement of sound in water and air.

Franklin’s work with electricity from 1747 to 1753 was his most important scientific achievement. Franklin explained the principle of operation of the Leyden jar, establishing the decisive role played by the dielectric that separates the conducting plates. He introduced the accepted designation of electrically charged states as + (positive) and(negative) and developed the unitary theory (“single fluid” theory) of electrical phenomena, which is based on an assumption of the existence of a single electrical substance, a deficiency or surplus of which determines the charge sign of a body. Franklin performed a great service in establishing the identity of atmospheric and static electricity and proving the electrical nature of lightning. After discovering that metal points connected with the ground reduce the electrical charges from charged bodies even without contact with them, Franklin proposed an efficient method of protection from lightning—the lightning rod.

Franklin was also responsible for a number of other technical inventions, including lamps for street lights, the economical Franklin stove, a special musical instrument, Franklin’s electrical machine, which revolves under the influence of electrostatic forces, and the use of an electric spark to ignite powder.

Franklin’s scientific achievements brought him widespread international recognition. He was elected an honorary member of a number of foreign academies and societies, including the Russian Academy of Sciences (1789).

WORKS

The Writings, vols. 1–10. New York, 1905–07.
In Russian translation:
Izbr. proizv. Moscow, 1956.
In Amerikanskie prosvetiteli, vol. 1. Moscow, 1968.
Opyty i nabliudeniia nad elektrichestvom. Moscow, 1956. (Translated from English.)

REFERENCES

Radovskii, M. I. B. Franklin. Moscow-Leningrad, 1965.
Gol’dberg, N. M. Svobodomyslie i ateizm v SShA (XVII–XIX vv.). Moscow-Leningrad, 1965.
Van Doren, C. Benjamin Franklin. New York, 1938.
Crane, V. W. Benjamin Franklin and a Rising People. Boston, 1954.

The Great Soviet Encyclopedia on Alexander Hamilton

Alexander_Hamilton_portrait_by_John_Trumbull_1806

Hamilton, Alexander

Born Jan. 11, 1757, on the island of Nevis; died July 12, 1804, in New York. US statesman.

During the War of Independence (1775-83), Hamilton became famous as an orator and journalist. From 1776 to 1781 he served in the army, and he was a secretary of G. Washington. In 1789 he was the leader of the Federalist Party. He favored a constitutional monarchy based on the English model. From 1789 to 1795, Hamilton was secretary of the treasury. He advocated a centralized government that would foster the development of a capitalistic economy. Hamilton’s research on the problems of value, money, and cost had a major influence on the further development of a bourgeois political economy in the USA. Oriented towards Great Britain in foreign policy, Hamilton, like other Federalist leaders,promoted the conclusion of an Anglo-American treaty that was not fair to the USA (the Jay Treaty).

WORKS

The Works of Alexander Hamilton, vols. 1-7. Edited by J. C. Hamilton. New York, 1851-52.

REFERENCES

Al’ter, L. B. Burzhuaznaia politicheskaia ekonomiia SShA. Moscow, 1961. Pages 61-75.
Schachner, N. A. Hamilton. New York-London, 1946.

The Great Soviet Encyclopedia on George Washington

Gilbert_Stuart_Williamstown_Portrait_of_George_Washington

Washington, George

Born Feb. 22, 1732, near Bridges Creek, Virginia; died Dec. 14, 1799, in Mount Vernon. American statesman, commander in chief of the American Army during the War of Independence in North America (1775-83), and first president ofthe USA (1789-97).

Washington was born into the family of a rich planter and slave owner. At the age of 15 he finished his education, and at the age of 16 he began to work as a surveyor. In 1751 he inherited the large estate of Mount Vernon and becameshareholder in the Ohio Company, which speculated in lands seized from the Indians. At the same time, Washington received the rank of major and was appointed the commander of one of the four districts of the Virginia militia. In 1755 he took part in the unsuccessful expedition to the French fort of Duquesne. At the beginning of the Seven Years’ War (1756-63), Washington, now a colonel, commanded the troops of Virginia. In 1759 he resigned. As a member of the Virginia House of Burgesses and judge of Fairfax County, Washington actively protested against the British government’s policy of limiting trade and industry in the colonies.

In 1774, Washington was elected to the First Continental Congress and in 1775 to the Second Continental Congress. At the very beginning of the war for independence of the English colonies in North America (a bourgeois revolution), the congress chose Washington as commander in chief of the rebel armed forces (June 15, 1775). In this position Washington displayed high moral qualities, courage, determination, and talent as a military leader and organizer. The congress repeatedly gave Washington broad and even dictatorial powers. Washington enjoyed popularity among the popular masses whose struggle made possible the triumph of the revolution. At the end of the war a group of reactionary officers organized a monarchical conspiracy and offered Washington the crown. He rejected this proposition. After the end of the war Washington retired to his estate. In the years 1786-87, Washington headed the reactionary forces which crushed the democratic movement of poor farmers and artisans under the leadership of D. Shays (Shays’ Rebellion). In 1787, under Washington’s chairmanship, the Constitution of the USA was drafted. With certain changes this constitution is still in effect today. In 1789, Washington was elected the first president of the USA (reelected in 1792). Carrying out a conservative policy, Washington opposed the democratic demands of the popular masses, consolidating only those achievements of the revolution which were necessary to the bourgeoisie and the planters. Although he included both Federalists and their opponent T. Jefferson in his cabinet, Washington nevertheless supported and in fact headed the Federalists with their centralizing and anglophile tendencies. Washington was one of the founders of the two-party system of the USA. He welcomed the beginning of the Great French Revolution, but its subsequent development frightened him. After the outbreak of war between revolutionary France and the European coalition in 1793, Washington refused to fulfill the obligations which the USA had as an ally, according to the French Alliance of 1778. Later,Washington favored American refusal to participate in alliances of and wars between the European states. Washington supported the inequitable treaty with Great Britain (the so-called Jay’s Treaty) concluded in 1794 which caused much indignation in the USA and undermined Washington’s popularity. Washington spent the last years of his life in Mount Vernon. He was a proponent of the gradual abolition of slavery, and in his will he freed all slaves belonging to him personally.

Washington has gone down in history as a progressive figure, since he occupied a consistent position on the most important issue of the American bourgeois revolution of the 18th century—the struggle for independence of the colonies. At the same time, he remained a representative of the interests of the propertied classes, and in this lies Washington’s limitation: he was a bourgeois revolutionary.

WORKS

The Writings, vols. 1-14. New York, 1889-93.
The Diaries, 1748-1799, vols. 1-4. New York [1925].

REFERENCES

Lenin, V. I. “Pis’mo k amerikanskim rabochim.” Poln. sobr. soch., 5th ed., vol. 37.
Ocherki novoi i noveishei istorii SShA, vol. 1. Moscow, 1960. (Contains a bibliography.)
Efimov, A. V. SShA: Puti razvitiia kapitalizma. Moscow, 1969.
Fursenko, A. A. Amerikanskaia burzhuaznaia revoliutsiia XVIII v. Moscow-Leningrad, 1960.
Iuzefovich, I. S. Dzhordzh Vashington i bor’ba za nezavisimost’ Ameriki. Moscow, 1941. (Contains a bibliography.)
Hughes, R. George Washington, vols. 1-3. New York, 1926-30. (Contains a bibliography.)

A. V. EFIMOV

Labour Party (EMEP): It Is a Human Duty to Resist ISIS, To Defend Rojova and To Be in Solidarity with Rojovan People

Rojava

The hunger for blood of ISIS gangs cannot be satiated. Gangs set up supposedly in the name of Allah and religion, refusing the right to live to non-Sunnis as well as Sunnis that disagree with them, trying to create a culture of massacres, torture, decapitation, playing football with severed heads, etc.

Following the abandoning of Mosul by regional powers to ISIS control as part of an imperialist plan, attacks on the Kobane Canton in Rojova (Kurdish region in Northern Syria) by ISIS gangs have been repealed by the Kurds and all those peoples who share their fate.

Initially supported against Syria and now attempting to control the whole of the Middle East, ISIS cannot be controlled. Having been supported and encouraged by Turkey, Saudi Arabia and Qatar, ISIS is increasing its influence in the region through daily massacres and attacks.

The union of all regional salafi-jihadist groups, ISIS is terrorising, dominating and occupying territories in the whole of Middle East and primarily the Sunni-Arab areas. It is clear that international imperialist powers are trying to legitimise ISIS.

Those behind the attack on the Kobane Canton include international imperialist powers such as the USA, France and UK, wanting to increase chaos and conflict in the Middle East and use it as an excuse for intervention, as well as those sectarian countries such as Turkey, Saudi Arabia and Qatar.

It is well known that Turkey staged numerous operations and machinations to suffocate the Rojovan Revolution. Having first supported Al Qaida, FSA and then Al Nusra, sending two thousand trucks full of weapons and supplies, providing money and logistical support and still failing to topple the Assad regime, regional dictators and imperial powers seem to be in agreement over suffocating the peoples’ rule in Rojova.

The Rojovan people are putting up a heroic resistance, causing great losses to and the withdrawal of ISIS in the face of resistance by PYD and PYJ forces. The resistance is growing, gaining more support and solidarity in the region and worldwide.

We support the attempts by Kurdish peoples and those of other beliefs, races and cultures to create a future that is free, just and united through the Rojovan revolution and repeat our message of solidarity. Threatened by the advances in Rojova, dictators, defenders of denial and assimilation, imperialists that divide up the Middle East and draw borders with rulers are now attempting to suffocate the Kurdish struggle through ISIS.

As world experiences have demonstrated, peoples that organise and resist cannot be beaten. The resistance of the Kurdish and all other Rojovan peoples will not be broken. We call on all peoples that stand up for labour, peace and freedom to support and show solidarity to the justified struggle of the Rojovan peoples.

Source

European ICMLPO Members: No to the Anti-Social, Anti-Democratic and Militarist European Union

logo_mundo-copia

Regional conference of parties and organizations of the International Conference of Marxist-Leninist Parties and Organizations (ICMLPO)

The recovery of the global capitalist economy is not on the agenda. The recovery is constantly being announced for tomorrow, but for the vast majority of countries, there is stagnation or recession. The so-called emerging countries are in turn caught up in the crisis.

Within the European Union, the governments of the right, social-democrats or coalition governments are imposing brutal austerity policies and the European Commission is charged with controlling their strict implementation. In the Euro zone, it exerts even a priori control of the budgets of the various governments, ensuring that they meet the neoliberal criteria of reduction of the budgets and the indebtedness of states.

This neoliberal dogma of reduction of state debts up to 3% of GDP has become the “rule of steel” especially written into the Merkel-Sarkozy Treaty (the “fiscal pact”), a real war machine against the social gains, social welfare and public services.

The offensive of the bosses, the governments and the European Commission focuses on the drastic lowering of wages and increased productivity, which combined make for increased profits of the monopolies. The crisis is a formidable pretext to generalize flexibility and oppose the rights and gains of the working class and the toiling masses. The policy of mega-austerity imposed by the “troika” (European Central Bank, European Union and IMF) on Greece, implemented by the coalition government of the right and social-democracy, is causing immense social harm, an unprecedented decline in the standard of living, a decrease in life expectancy and the health of the population, not to mention the exodus of young people and skilled workers, who have left their country in the hope of finding work in other countries. The same thing is taking place in Spain, Italy and Portugal, where unemployment has skyrocketed, especially among the young workers, and where millions of families live below the “official” poverty line.

Europe is synonymous with the policy of austerity, social regression, etc.

For the workers and peoples, the youth and women of the popular strata, the EU stands for the policy of austerity, social regression, the competition of all against all, social dumping, mass unemployment and misery. In all the EU countries, the working class and the toiling masses are in a chorus of protest against this policy: a massive protest, with strikes, demonstrations and mobilizations that put millions of people in the streets, of urban and rural workers, the retired, etc., in short of all the victims of this policy. The media controlled by the monopolies pass over this in silence, because the financial oligarchy, the governments at its service and the European Commission are its instrument, fearing above all that those fights against the same policies will reinforce each other, and that the working class and the toiling masses will become conscious of their strength and their common interests and they will lead all strata that are victims of these austerity policies in their fight.

and of reaction

To impose these policies of austerity and competitiveness, the financial oligarchy, the monopolies and banks do not hesitate to put in place unelected governments, governmental alliances including parties of the extreme right, and to impose European norms and directives that have the force of law, which are binding on the governments, parliaments and national institutions. Thus also in Italy, the troika began by imposing the first non-elected government and gave its support to a third government, also unelected, led by a reformist liberal leader who wants to speed up imposing anti-worker measures and an authoritarian presidential system. Austerity goes along with with more reaction, more repression against all those who oppose it and further criminalization of social protest.

This only emphasizes the anti-social and anti-democratic character of the EU. The real power is in the hands of the heads of states and governments and the unelected European Commission, which decides and develops directives that are imposed on states, under pressure from representatives of lobbies of the monopolies. The superabundant European Parliament discusses these constantly, but its decisions have little effect. It serves as a “democratic” pretext to an EU that is not democratic.

No to Fortress Europe, No to Militarist Europe

This is a EU that takes refuge behind an arsenal of laws, of military ships, of walls, in order to hunt down potential migrants crammed into boats, of whom thousands have capsized in the Mediterranean. With “Frontex” [the EU agency that controls external borders – translator’s note], detention camps such as that of Lempedusa, the walls of barbed wire, this “fortress Europe” wants to “defend” the men and women who are fleeing poverty and wars for which it is itself responsible.

Indeed, it is the EU which today is intervening militarily in the Central African Republic, an intervention decided and implemented on the ground in the first place by French imperialism, which called on its EU allies for help. Some governments have sent troops, other logistical support, but none have condemned the intervention, which is turning into a quagmire, like all imperialist military interventions in Africa. Their principal objective is the maintenance of neocolonial domination and the control of sources of raw materials, particularly uranium deposits. The most aggressive and belligerent imperialist powers in the EU, particularly French imperialism, British imperialism, and more and more German imperialism, are playing a particularly dangerous and reactionary role in order to push the EU to acquire military means to defend “their” interests, particularly in Africa, which it considers its “exclusive hunting ground.” This policy is carried out in close collaboration with U.S. imperialism, which gobbles up billions and is pushing militarization in all the EU countries. It is openly directed against the struggles of the peoples of Africa, who are fighting to get rid of imperialist domination and the reactionary cliques in power in these countries, which are its instruments.

Secret negotiations on the “Great Transatlantic Market”

For months the European Commission has been negotiating in secret the terms of a trans-Atlantic agreement with representatives of the governments, the Ministries of Commerce and the big U.S. companies. It is a neoliberal “free trade” treaty that seeks to break the norms of protection of food quality and the environment and to expand the opening of all markets, in particular public markets, to the appetites of the monopolies. These agreements would allow the monopolies to bring the States before a private court that could sentence them for obstructing “free” competition. This treaty was presented by Obama as a “NATO” in commercial matters, aimed at combating the economic power of China and other competitors of the US-EU alliance, according to the formula: Unite against the rest of the world and set off together in the economic war for the conquest of markets and the control of raw materials and sources of energy. This agreement is a war machine against the workers and peoples of the whole world, through the competition of all against all. The only beneficiaries of the “free and undisturbed competition” are the most powerful monopolies. It is urgent that a large movement be developed in all EU countries to demand an end to these negotiations.

The dangerous situation in Ukraine

This policy has led to the current dangerous situation in Ukraine and throughout the region, which threatens to escalate into a large-scale military confrontation.

First, there are the inter-imperialist contradictions, the policy of eastward expansion of the EU, under the impetus of German imperialism, which is seeking to strengthen its leadership in the EU and thus carry more weight in the competition among the imperialist powers on a world scale.

Ukraine is a large country with very important resources and occupies a geostrategic position that is essential for Russia. To swallow up Ukraine into the sphere of influence of the EU would be a great blow to Russia and the ambitions of its leaders to make their country a major imperialist power. No one should ignore this. But this is exactly what made the EU leaders not hesitate to support the reactionary forces, including openly fascist forces, who took power through a coup. Putin’s reaction was immediate. U.S. imperialism openly came into action to take control of the management of this crisis and to place itself at the head of its European allies, who for years have built economic ties with Russia. French imperialism sells it weapons, German imperialism depends in part on its gas supplies, British imperialism needs billions from the Russian financial oligarchy, and a large portion of the gas consumed by EU countries runs through Ukrainian pipelines. Taking advantage of this crisis, NATO is expanding to the East, still closer to the borders of Russia, which only fuels the tension.

The big imperialist powers are directly involved and are adversaries. If today none of them wants a direct military confrontation, an unstable situation has taken hold in the region amid a revival of militarism. The EU appears more and more clearly as an imperialist bloc whose ambitions threaten peace. While there is not complete unity within it, this is the course that the dominant imperialist powers within it are imposing and are developing on its behalf.

The identity of views between the social-democratic parties and the conservative parties should be noted here. They all supported the Allied response to the extreme right in Ukraine and they all welcome the return of NATO to the stage. The way the appointment of Stoltenberg, a leader of Norwegian social-democracy, as Secretary General of NATO was hailed by all of these forces is an example.

The workers and peoples reject this Europe

This whole policy is now the object of a profound rejection by the workers and peoples. This protest continues to grow everywhere. The progressive, revolutionary and anti-imperialist forces, the Marxist-Leninist parties and organizations, have an urgent duty to stand at the head of this vast protest that affects all strata of the people, starting with the working class. To stand at the head of this protest means to fight relentlessly against the austerity policies that the governments and the EU are imposing. It is to support the aspirations and struggles of the workers and peoples against the anti-democratic character of the EU, against the imperialist nature of its policy and against the denial of the right of the peoples to decide their own future.

The reactionary and extreme right forces, the openly fascist groups and parties want to take advantage of this protest to lead it on the dangerous path of nationalism, division and xenophobia. For them, the enemy is not the capitalist system, but the other peoples or the “foreigners.” These forces want to utilize the European elections to strengthen themselves, to elect deputies and receive funding from the EU to extend their work.

The position of the Marxist-Leninist parties and organizations in the European elections

We Marxist-Leninist parties and organizations, the signatories of this declaration, will develop our analysis of the nature of the EU and its policies and make known our positions on the occasion of these elections. These elections are a reflection of European construction; this is a caricature of democracy.

In countries where there are forces that are taking part in these elections on positions of the fight against the EU of austerity, reaction and war, we call for a vote for these lists. In countries where this is not the case, or where the choice is between forces supporting the EU and forces that criticize it in certain aspects, without questioning its foundations or its objectives, and develop illusions about possibility of reforming it, we do not endorse any of these lists and develop an active policy in favor of abstention.

In the countries where the progressive forces are fighting for the withdrawal of their country from the EU, or where they have popular support or they are engaged in broad fronts that are taking part in lists on this basis, we call for a vote for them. We will popularize these lists on an international level, in the name of the right of the peoples to decide their own fate. We denounce any blackmail, any attempt to conceal their fight or to distort its meaning and range.

In all cases, we put forward the following main lines:

Down with the imperialist EU
Stop the austerity policies of the EU
No to the EU of austerity and reaction
No to the Europe of criminalization of social protest
No to the war policy of the EU
No to the Transatlantic Treaty
No to the project of the United States of Europe
No to imperialist Europe
For the right of the peoples to withdraw from the EU
Yes to the solidarity of the workers and peoples.

Regional conference of member parties and organizations of the International Conference of Marxist-Leninist Parties and Organizations

Germany, April 2014

Denmark: Communist Workers’ Party of Denmark – APK; France: Communist Party of the Workers of France – PCOF; Germany: Organization for the construction of a Communist Workers Party (Arbeit Zukunft); Italy: Communist Platform of Italy; Norway: Marxist Leninist Group Revolution; Spain: Communist Party of Spain Marxist-Leninist – PCE-ml; Turkey: Party of Labor EMEP

Source